Income Statement for Xenon Manufacturing:

2008 2009

Total sales 202 212

Cost of sales -148 -172

Gross Profit 54 40

Selling, general,

and administrative expenses -22 -20

Research and development -8 -7

Depreciation and amortization -4 -3 Operating Income 20 10

Other income 4 6

Earnings before interest

and taxes (EBIT) 24 16

Interest income (expense) -7 -4

Pretax income 14 12

Taxes -4 -3

Net Income 10 9

Q.4. Consider the above Income Statement for Xenon Manufacturing. All values are in millions of dollars. Calculate the gross margin for 2009.

Q.5. Consider the above Income Statement for Xenon Manufacturing. All values are in millions of dollars. Calculate the operating margin for 2008.

Q.7. If the value of inventory of Xenon Manufacturing is $ 60 million in 2008 what is the Inventory Turnover Ratio for the company in that year?