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AHIP AHM-520 Exam - Topic 3 Question 128 Discussion

The Fairway health plan is a for-profit health plan that issues stock. The following data was taken from Fairway's financial statements:Current assets.....$5,000,000Total assets.....6,000,000Current liabilities.....2,500,000Total liabilities.....3,600,000Stockholders' equity.....2,400,000Fairway's total revenues for the previous financial period were $7,200,000, and its net income for that period was $180,000.For the previous financial period, Fairway's net profit margin was
A) 2.50%
B) 3.00%
C) 3.60%
D) 7.50%

AHIP AHM-520 Exam - Topic 3 Question 128 Discussion

Actual exam question for AHIP's AHM-520 exam
Question #: 128
Topic #: 3
[All AHM-520 Questions]

The Fairway health plan is a for-profit health plan that issues stock. The following data was taken from Fairway's financial statements:

Current assets.....$5,000,000

Total assets.....6,000,000

Current liabilities.....2,500,000

Total liabilities.....3,600,000

Stockholders' equity.....2,400,000

Fairway's total revenues for the previous financial period were $7,200,000, and its net income for that period was $180,000.

For the previous financial period, Fairway's net profit margin was

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Suggested Answer: A

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