In: Accounting
Archware Systems has total assets of $35.594
billion, total debt of $9.678 billion, and net sales of $22.230
billion. Their
net profit margin for the year was 0.23, while the operating
profit
margin was 30 percent. What is Archware’s net income? (Answer needs
to be stated in billions. For example: 2.83) Round to two decimal
places.
Net profit margin = Net Income/ Sales
Rearrange the equation to get:
Net Income = Net profit margin * Sales
Net Income = (PM) * (NS) = 0.23 * $22.230 billion = $5.11 billion
Archware's net income is $5.11 billion