Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume a company's Income Statement for Year 12 is as follows: Income Statement Data Year 12 (in 000s) Net Revenues from Footwear Sales $ 560,000

Assume a company's Income Statement for Year 12 is as follows:

Income Statement Data Year 12 (in 000s)
Net Revenues from Footwear Sales $ 560,000
Cost of Pairs Sold 340,000
Warehouse Expenses 45,000
Marketing Expenses 85,000
Administrative Expenses 15,000
Operating Profit (Loss) 75,000
Interest Income (Expense) (25,000)
Pre-tax Profit (Loss) 50,000
Income Taxes 15,000
Net Profit (Loss) $ 35,000

Based on the above income statement data and assuming the company has 20 million shares of common stock outstanding, the company's operating profit margin and EPS were

a)13.79% and $2.59.

b)13.39% and $3.75.

c)13.39% and $1.75

d)15.7% and $2.25.

e)10.38% and $1.75.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

4. Identify the challenges facing todays organizations

Answered: 1 week ago