[The following information applies to the questions displayed below.]
Massa Company, which has been operating for three years, provides marketing consulting services worldwide for dot-com companies. You are a financial analyst assigned to report on the Massa management team’s effectiveness at managing its assets efficiently. At the start of 2016 (its fourth year), Massa’s T-account balances were as follows. Dollars are in thousands.
(COMMON STOCK, CAPITAL, RETAINED EARNINGS, AND CONSULTING FEE MIGHT HAVE INCORRECT NUMBERS.)
4. Calculate the net profit margin ratio for 2016. (Round your answer to 2 decimal places.)
Assets Cash Accounts Receivable Long-Term Investments 4,000 8,600 6,500 Liabilities Accounts Payable Unearned Revenue Long-Term Notes Payable 1,800 4,900 1,100 Stockholders’ Equity Common Stock ($.1O par value) Additional Paid-in Capital Retained Earnings 660 3,740 6,900 Revenues Consulting Fee Revenue Interest Revenue Expenses Wages Expense Travel Expense Utilities Expense Rent Expense