Question

Can this question please be answered?

2016 2017 $3,445,134 Net sales (total revenue) $3,545,794 Cost of sales 2,301,181 2,243,232 906,086 Selling, general, and administrative 848,323 Operating income 338,527 353,579 Other income (expense) (5,449) Other expenses (4,587) Interest income and other, net 4159 1901 Income before income taxes 338,099 350,031 Provision for income taxes 119,979 125,542 $218,120 Net income $224,489 Basic earnings per share $ $ 1.87 1.79 Diluted earnings per share $ 1.86 1.78

1) Using the formulas in Table 4.1 and Urban Outfitters’s financial statement starting on page 117, calculate the following measures of financial performance. Be sure to report items (a) through (e) in percentages (i.e., multiply your result x 100).

a. Gross profit margin

b. Operating profit margin

c. Net profit margin

d. Times-interest-earned (or coverage) ratio

e. Return on stockholders’ equity

f. Return on assets

g. Debt-to-equity ratio

h. Days of inventory

i. Inventory turnover ratio

j. Average collection period

Answer 1

		2017
a. Gross profit margin	(Net sales - cost of goods sold)/net sales	34.9%
b. Operating profit margin	operating income/net sales	10.3%
c. Net profit margin	net profit/net sales	6.5%
d. Times-interest-earned (or coverage) ratio	EBIT/Interest expenses		No interest expenses given
e. Return on stockholders’ equity	Net income/average stakeholder equity	4.6%
f. Return on assets	Net income/average assets	0.03
g. Debt-to-equity ratio	Total debt/equity	0.13
h. Days of inventory	365/(cogs/average inventory)	54.41184
i. Inventory turnover ratio	cogs/average inventory)	6.708099
j. Average collection period	365/(net sales/average receivables)	6.898602