Shelton, Inc., has sales of $20 million, total assets of $18.2 million, and total debt of $9.1 million. Assume the profit margin is 9 percent. What is the company's net income

Answer:

$1,800,000

Explanation:

Shelton incorporation has sales of $20,000,000

Total assets is $18.2 million

Total debt is $9.1 million

Profit margin is 9%

Therefore the company net income can be calculated as follows.

= sales × profit margin

= 20,000,000 × 9/100

= 20,000,000 × 0.09

= 1,800,000

Hence the company net income us $1,800,000

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