The 2016 Income Statement of Kellyson Enterprises Shows Operating Revenues

Essay

The 2016 income statement of Kellyson Enterprises shows operating revenues of $120,500, selling expenses of $35,200, general and administrative expenses of $29,900, interest expense of $1,500, and income tax expense of $10,520.Kellyson's stockholders' equity was $280,000 at the beginning of the year and $320,000 at the end of the year.The company has 20,000 shares of stock outstanding at December 31, 2016.
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Required: Compute Kellyson's profit margin.What other information would you need in order to comment on whether this ratio is favorable?