6. Dr. Zhivago Diagnostics Corp. A. Compute Profit Margin. B. With increase in sales and cost of goods sold, compute new income after taxes and profit margin. 18. Sales of $3 million, 10% of sales are cash sales, account receivable is $285,000..pute Average Collection Period. 21. Jim Short's Co. Sales at $4,820,000. Compute various ratios. 22. Stud Clothiers. Sales at $2,400,000. Compute various ratios.

This question is a mixture of different distinct questions,Dr Zhivago Diagnostics is different question, another question starts from the sales of $3 million,another one begins from Jim Short's Co and lastly Stud Clothiers is another question.

My approach is to solve the first question Dr Zhivago Diagnostics Corp.

Find the attached full question on Dr Zhivago Diagnostics Corp.

Profit margin is 25.18%

Income after taxes $ 404,110.00  

Profit margin thereafter is 20.42%

Explanation:

Profit margin =operating profit/sales

operating profit  is $705,000

Sales is $2,800,000

Profit margin =%705,000/$2,800,000=25.18%

When sales increase by 10% and costs of good sold increased by 20%

operating profit  is $ 629,000.00  

Sales  is $ 3,080,000.00  

operating margin=$629,000/$3,080,000=20.42%

Profit after tax is $ 404,110.00  

since the question is similar to excel format. I decided to do detailed calculations in excel as in the attached.

answerreactive approach;