Consider the following financial data for Larry’s Computer Stores: Statement of Financial Position as of December 31, 2012 Cash & equivalents $ 94,500 Accounts payable $ 122,500 Receivables 202,500 Short-term bank note 162,500 Inventories 364,000 Accrued wages and taxes 110,500 Total current assets $ 661,000 Total short-term liab. $ 395,500 Long-term debt 418,000 Net fixed assets 468,500 Common equity 316,000 Total assets $ 1,129,500 Total liabilities & equity $ 1,129,500 Statement of Earnings for the Year Ended December 31, 2012 Sales revenue $ 450,000 Cost of merchandise sold 250,000 Gross profit $ 200,000 Operating expenses 97,500 Earnings before interest and taxes (EBIT) $ 102,500 Interest expense 46,500 Earnings before taxes (EBT) $ 56,000 Federal and state income taxes (45 percent) 25,200 Net earnings $ 30,800 Calculate Larry’s net profit margin. a. 15.40% b. 4.66% c. 2.73% d. 6.84% e. 9.75%
Consider the following financial data for Larry’s Computer Stores: Statement of Financial Position as of December 31, 2012 Cash & equivalents $ 94,500 Accounts payable $ 122,500 Receivables 202,500 Short-term bank note 162,500 Inventories 364,000 Accrued wages and taxes 110,500 Total current assets $ 661,000 Total short-term liab. $ 395,500 Long-term debt 418,000 Net fixed assets 468,500 Common equity 316,000 Total assets $ 1,129,500 Total liabilities & equity $ 1,129,500 Statement of Earnings for the Year Ended December 31, 2012 Sales revenue $ 450,000 Cost of merchandise sold 250,000 Gross profit $ 200,000 Operating expenses 97,500 Earnings before interest and taxes (EBIT) $ 102,500 Interest expense 46,500 Earnings before taxes (EBT) $ 56,000 Federal and state income taxes (45 percent) 25,200 Net earnings $ 30,800 Calculate Larry’s net profit margin. a. 15.40% b. 4.66% c. 2.73% d. 6.84% e. 9.75%
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Consider the following financial data for Larry’s Computer Stores:
Statement of Financial Position as of December 31, 2012Cash & equivalents $94,500Accounts payable $ 122,500Receivables 202,500Short-term bank note 162,500Inventories 364,000Accrued wages and taxes 110,500Total current assets $661,000Total short-term liab. $ 395,500Long-term debt 418,000Net fixed assets 468,500Common equity 316,000Total assets $1,129,500Total liabilities & equity $ 1,129,500Statement of Earnings for the Year Ended December 31, 2012Sales revenue $450,000Cost of merchandise sold 250,000Gross profit $200,000Operating expenses 97,500Earnings before interest and taxes (EBIT) $102,500Interest expense 46,500Earnings before taxes (EBT) $56,000Federal and state income taxes (45 percent) 25,200Net earnings $30,800
Calculate Larry’s net profit margin.a. 15.40%b. 4.66%c. 2.73%d. 6.84%e. 9.75%
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