The 2014 Income Statement of Cigmar Enterprises Shows Operating Revenues

Essay

The 2014 income statement of Cigmar 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.Cigmar'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 31,2014.
REQUIRED: Compute Cigmar's profit margin.What other information would you need in order to comment on whether this ratio is favorable?