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Compute the firms net profit margin, total asset turnover, and financial leverage multiplier (also known as the equity multiplier). Manufacturing, Inc. has the following financial
Compute the firms net profit margin, total asset turnover, and financial leverage multiplier (also known as the equity multiplier).
Manufacturing, Inc. has the following financial statements data for 2014:
Income Statement |
|
| Balance Sheet |
|
Sales | $102,500 |
| Cash | $40,000 |
Cost of Goods | $50,000 |
| Fixed Assets | $55,000 |
SG&E Expenses | $35,000 |
| Total Assets | $95,000 |
EBIT | $17,500 |
| Accounts Payable | $12,000 |
Interest Expense | $2,500 |
| Long-term Debt | $25,000 |
Taxes | $6,000 |
| Retained Earnings | $28,000 |
Net Income | $9,000 |
| Paid-in Common Equity | $30,000 |
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