Question

What is the firm's operating margin? (2 pictures, for the same question)

Question Completion Status: Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities 2014 $ 2,500 11,500 16.000 $30,000 $20,000 $50,000 $ 9,500 5,500 7,000 $22,000 Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $15,000 $37,000 $ 2,000 11,000 $13,000 $50,000 Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings bef interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income 2014 $87,500 81,813 1.531 $ 4,156 1,375 $ 2,781 973 $ 1,808 Other data: Shares outstanding (millions) Common dividends Intrate on notes payable & L-T bonds Federal plus state income tax rate 500.00 $632.73 6.25% 35% Click Save and Submit to see and submit. Click Save All Answers to save all answers

Answer 1

Solution: Operating margin=EBIT/Net sales 4.75% 4156/87500