Practice prompt · Q:statement-presentation-comprehensive-income-and-disclosure/practice-net-margin

Net margin

Calculate net margin across continuing and discontinued results.

Updated Sep 13, 2026 Review due Dec 13, 2026

Practice

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Revenue is $1,000 thousand. Operating income is $180 thousand, a nonoperating loss is $20 thousand, and income tax expense on continuing operations is $40 thousand. A discontinued operation adds $15 thousand after tax; OCI includes a $10 thousand after-tax loss. What is net profit margin?

Choose the best answer. a 12.0% b 13.5% c 12.5% d 18.0%

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Answer: b

Net profit margin is 13.5%: net income is $135 thousand ($180 − $20 − $40 + $15), and $135 ÷ $1,000 = 13.5%. The OCI loss is excluded.