Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 4P
Summary Introduction
To calculate:The value of the operating profit of Rod Fishing Supplies.
Introduction:
Operating profit:
Operating profit is a tool used to assess the health of a business. It provides information about the amount of profit that the company is making from its operations.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods
Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense
= $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue's gross profit is equal to
Select one:
a. 1,070,000
b. $1,100,000
c. $1,500,000
d. $770,000
Consider the following operating results for the past year for
Sanitation Inc.:
Sales = $22,561
Depreciation = $1,390
Interest Expense = $1,120
Costs $16,530
Tax Rate = 21 percent
What was the company's operating cash flow (OCF)?
=
Grandy productions reported the following items for the current year sales 15,250,000; cost of goods 8750,000; depreciation expense 335,000; taxes925,000 administrative expenses; 275,000 interest, expenses; 97,500 and marketing expenses 385,000. What is grandes operating income?
Chapter 2 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Ch. 2 - Discuss some financial variables that affect the...Ch. 2 - What is the difference between book value per...Ch. 2 - Explain how depreciation generates actual cash...Ch. 2 - What is the difference between accumulated...Ch. 2 - How is the income statement related to the balance...Ch. 2 - Prob. 6DQCh. 2 - Explain why the statement of cash flows provides...Ch. 2 - What are the three primary sections of the...Ch. 2 - Prob. 9DQCh. 2 - Why is interest expense said to cost the firm...
Ch. 2 - Frantic Fast Foods had earnings after taxes of...Ch. 2 - Sosa Diet Supplements had earnings after taxes of...Ch. 2 - a. Swank Clothiers had sales of $383,000 and cost...Ch. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Given the following information, prepare an income...Ch. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prepare an income statement for Virginia Slim...Ch. 2 - Prob. 10PCh. 2 - Stein Books Inc. sold 1,900 finance textbooks for...Ch. 2 - Lemon Auto Wholesalers had sales of $1,000,000...Ch. 2 - Prob. 13PCh. 2 - Fill in the blank spaces with categories 1 through...Ch. 2 - Arrange the following items in proper balance...Ch. 2 - Elite Trailer Parks has an operating profit of...Ch. 2 - Quantum Technology had $669,000 of retained...Ch. 2 - Botox Facial Care had earnings after taxes of...Ch. 2 - Stilley Corporation had earnings after taxes of...Ch. 2 - Prob. 20PCh. 2 - The Rogers Corporation has a gross profit of...Ch. 2 - Nova Electrics anticipates cash flow from...Ch. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - For December 31, 20X1, the balance sheet of Baxter...Ch. 2 - Refer to the following financial statements for...Ch. 2 - Now click on “Balance Sheet� and compute the...Ch. 2 - Prob. 4WE
Knowledge Booster
Similar questions
- Precision System had sales of $820,000, cost of goods of $510,000, selling and administrative expense of $60,000, and operating profit of $103,000. What was the value of depreciation expense? Set up this problem as a partial income statement and determine depreciation expense as the “plug” figure required to obtain the operating profit.arrow_forwardNet Income and OCF During the year, BelykPaving Co. had sales of $2,600,000.Cost of goods sold.administrative and sellingexpenses,and depreciationexpense were $1,535,000，$465,000，and $520.000respectively. In addition,the company had an interesexpense of $245,000 and a tax rate of 35 percent. (lgnoreany tax loss carryback or carryforward provisions.忽略税收)a. What is the company's net income?b. What is its operating cash flow?c.Explain your results in parts (a) and (b).arrow_forwardPollux Company had the following income statement for last year Sales-$360,000 Less: Cost of goods sold-$195,000 Gross margin-$165,000 Less: Selling & administration expense-$78,600 Operating income- $86,400 Beginning assets were $565,000 and ending assets were $597, 000. Carry computations out to three decimals places A. What are average operating assets? B. what is margin? C. what is turnover? D. What is ROI?arrow_forward
- Selling, general, and administrative expenses were $80,000; net sales were $390,000; interest expense was $16,000; research and development expenses were $34,000; net cash provided by operating activities was $42,000; income tax expense was $10,000; cost of goods sold was $220,000. Gross profit for the period was: Multiple Choice $56,000. $90,000. $170,000. $390,000.arrow_forwardDuring the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000,000. A. Based on this information, calculate asset turnover. B. Using the sales margin from the previous exercise, what is the total ROI for the company during the current year?arrow_forwardOvercharge Card reports that following amounts: Sales = $3,000,000; Cost of Goods Sold = $1,200,000; Depreciation Expense = $140,000; Administrative Expense = $270,000; Interest Expense = $70,000; Marketing Expense = $60,000; and Taxes =$80,000. What is Overcharge’s operating income?arrow_forward
- classy clocks ltd had sales of $1,840,000 . Cost of goods sold, administrative and selling expenses. and depreciation expenses were 1,180,000, 185,000 and 365,000 respectively. IN addition the company had an interest expense of 280,000 and a tax of 35 percent what is the OCFarrow_forwardhas sales of $4,000,000, cost of goods sold of $ 2,250,000, cash on hand of 250,000, net plant and equipment of 1,500,000 and accounts payable of 55,000. Calculate the gross profit.arrow_forwardHow do I determine the net plant, property, and equipment as an excel formula given the following information: sales: 64,800 cost of good sold: 38,880 Gross profit: 25,920 General Selling and Admin expense: 7150 Depreciation: 2500 Interest expense: 1250 Income before taxes: 4506 accounts receivable: 12,500 cash collected from sales: 52,300 gross profit margin 40% tax rate 30%arrow_forward
- K George Company had the following data for the current year. What is the income from continuing operations for the year? Net Sales $169,000 16,000 Discontinued Operations Gain (after tax) Cost of Goods Sold Income Tax rate 82,000 40% 14,000 Operating Expenses Other Income and (Expenses): Gain on Sale of Equipment Loss on Disposal of Equipment A. $73,000 OB. $45,000 OC. $60,000 OD. $75,000 8,000 (6,000) 27.arrow_forwardXYZ Corporation earned $500,000 in revenue for the year. The cost of goods sold was $200,000, and operating expenses amounted to $100,000. Calculate the gross profit and operating profit.arrow_forwardConsider the following income statement: Sales Costs $ 602,184 391,776 Depreciation 89,100 Taxes Calculate the EBIT. EBIT 21% Calculate the net income. Net incomearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College