Find Operating Profit Margin.

Exercise #1: Here are simplified financial statements of ABC Electronics, Inc INCOME STATEMENT (in millions of dollars) Net sales Cost of goods sold Other expenses Depreciation 12,800 3,860 4,127 2,398 Earnings before interest and taxes (EBIT) Interest expense 2,415 665 Income before tax Taxes (at 30%) 1,750 525 Net income Dividends 1,225 836 BALANCE SHEET (in millions of dollars) End of Year Start of Year Assets Cash and marketable securities Receivables Inventories Other current assets 85 2,182 167 847 154 2,410 218 912 Total current assets Net property, plant, and equipment Other long-term assets 3,281 19,933 4,176 3,694 19,875 3,730 Total assets Liabilities and shareholders' equity Payables Short-term debt Other current liabilities 27,390 27,299 2,524 1,399 791 3,000 1,553 767 Total current liabilities Long-term debt and leases Other long-term liabilities Shareholders' equity 4,714 8,014 6,138 8,524 5,320 7,549 6,109 8,321 Total liabilities and shareholders' equity 27,390 27,299