rate positively ..
Year 2 | Year 1 | ||||||||||
a | Net sales | 5080 | 4000 | ||||||||
b | Operating cost | 1365 | 1268 | ||||||||
c | Depreciation and amortization | 254 | 160 | ||||||||
d | Total operating cost | 1619 | 1428 | ||||||||
e | Operating income | 3461 | 2572 | ||||||||
f | Less: Interest | 467 | 206 | ||||||||
g | Earning before tax | 2994 | 2366 | ||||||||
h | Less: Taxes | 749 | 592 | ||||||||
i | Net income | 2245 | 1774 | ||||||||
j | Total asset | 15037 | 9400 | ||||||||
k | Total equity | 5000 | 5000 | ||||||||
Ratio computation | Value | ||||||||||
i=d/a | Operating margin | 68.13% | 64.30% | ||||||||
ii=i/a | Profit margin | 44.19% | 44.35% | ||||||||
iii=i/j | return on total asset | 14.93% | 18.87% | ||||||||
iv=i/k | Return on common equity | 44.90% | 35.48% | ||||||||
v=j/e | Basic earning power | 23.02% | 27.36% | ||||||||
Correct statements - | |||||||||||
a) If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales. | |||||||||||
b) If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. | |||||||||||
Ch 04: Assignment - Analysis of Financial Statements 5. Profitability ratios Profitability ratios help in the...
Profitability ratiosProfitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm.Your boss has asked you to calculate the profitability ratios of Sixty-Second Avenue Inc. and make comments on its second-year performance as compared with its first-year performance.The following shows Sixty-Second Avenue Inc.’s income statement for the last two years. The company had assets of $11,750 million in the first year and $18,796 million...
5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Dernham Inc. and make comments on its second-year performance as compared to its first-year performance. The following shows Dernham Inc.'s income statement for the last two years. The company had assets of $7,050 million in the first year and...
5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Spandust Industries Inc. and make comments on its second-year performance as compared to its first-year performance. The following shows Spandust Industries Inc.'s income statement for the last two years. The company had assets of $11,750 million in the first...
5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm Your boss has asked you to calculate the profitability ratios of Petroxy Oil Co. and make comments on its second-year performance as compared to its first-year performance The following shows Petroxy Oil Co.'s income statement for the last two years. The company had assets of $4,700 million in the first...
Correctly answer each part of the question 5 Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Spandust Industries Inc. and make comments on its second-year performance as compared to its first-year performance. The following shows Spandust Industries Inc.'s income statement for the last two years. The company had assets of...
Please help this is for a grade ! thank you!! Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Gadget Twin Inc. and make comments on its second-year performance as compared to its first-year performance. The following shows Gadget Twin Inc.'s income statement for the last two years. The company had...
11. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Consider the following scenario: Your boss has asked you to calculate the profitability ratios of Cute Camel Woodcraft Company and make comments on its second-year performance as compared to its first-year performance. The following shows Cute Camel’s income statement for the last two years. The company had assets of $5,875,000...
The following shows Sixty-Second Avenue Inc.'s income statement for the last two years. The company had assets of $9,400 mllion in the first year and $15,037 mil lion in the second year. Common equity was equal to $5,0DD million inthe first year, and the company distributed 100% of its earings out as dividends during the first and the second years. In addition, the firm didnot issue new stock during either year sixty-second Avenue Inc. Income Statement For the Year Ending...
4. Profitability ratiosProfitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm.Your boss has asked you to calculate the profitability ratios of Petroxy Oil Co. and make comments on its second-year performance as compared with its first-year performance.The following shows Petroxy Oil Co.’s income statement for the last two years. The company had assets of $5,875 million in the first year and $9,398...
Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm Your boss has asked you to calculate the profitability ratios of Diusitech Inc. and make comments on its second-year performance as compared to its first-year performance The following shows Diusitech Inc.'s income statement for the last two years. The company had assets of $10,575 million in the first year and 16,916 million in...