Question
Green Thumb Garden Supplies reported the following information for 2017 and 2018. 20182017 Assets Cash...........................................................$50,000$45,000 Accounts receivable...................................35,00025,000 Inventory.....................................................25,00020,000 Property, plant, and equipment..................240,000210,000 Total assets................................................$350,000$300,000 Liabilities
Green Thumb Garden Supplies reported the following information for 2017 and 2018.
20182017
Assets
Cash...........................................................$50,000$45,000
Accounts receivable...................................35,00025,000
Inventory.....................................................25,00020,000
Property, plant, and equipment..................240,000210,000
Total assets................................................$350,000$300,000
Liabilities and Shareholders' Equity
Current liabilities.........................................$65,000$60,000
Non-current liabilities.................................110,00090,000
Shareholders' equitycommon.................175,000150,000
Total liabilities and shareholders' equity....$350,000$300,000
Income statement for 2018
Sales..........................................................$95,000
Cost of goods sold.....................................45,000
Gross profit.................................................50,000
Operating expenses...................................15,000
Income before income tax.........................35,000
Income tax expense...................................5,000
Net income.................................................$30,000
Share data for 2018
Weighted average number of common shares6,000
Market price per common share................$40
Dividends per share...................................$0.90
What is the profit margin for 2018?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
