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Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the rm has no amortizatio charges, it does not
Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. Note that the rm has no amortizatio charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes pay be rolled over. Balance Sheet (Millions of $) Assets 2019 Cash and securities $4,200 Accounts receivable 17,500 Inventories 20,300 Total current assets $42,000 Net plant and equipment $28,000 Total assets $70,000 Liabilities and Equity Accounts payable $22,509 Accruals 14,391 Notes payable 6,000 Total current liabilities $42,900 Long-term bonds $1 1,000 Total liabilities $53,900 Common stock $3,542 Retained earnings 12,558 Total common equity $16,100 Total liabilities and equity $70,000 Income Statement (Millions of $) 2019 Net sales $105,000 Operating costs except depreciation 97,650 Depreciation 2,100 Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends (millions of '3) Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price $5,250 1,020 $4,230 1,058 $2,538 500.00 $888.30 6% 40% $60.91 Refer to Exhibit 4.1. What is the firm's operating margin? Do not round your intermediate calculations. 4.65% O 3.90% O 5.60% O 3.80% O 5.00%
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