Question
Luther Corporation Consolidated Income Statement Year ended December 31 (in $millions) 2006 2005 Total sales 610.1 578.8 Cost of sales (500.2) (355.3) Gross profit 109.9
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $millions)
2006 | 2005 | |
Total sales | 610.1 | 578.8 |
Cost of sales | (500.2) | (355.3) |
Gross profit | 109.9 | 223.5 |
Selling, general, and administrative expenses | (40.5) | (38.7) |
Research and development | (24.6) | (21.8) |
Depreciation and amortization | (3.6) | (3.9) |
Operating income | 41.2 | 159.1 |
Other income | ||
Earnings before interest and taxes (EBIT) | 41.2 | 159.1 |
Interest income (expense) | (25.1) | (15.3) |
Pretax income | 16.1 | 143.8 |
Taxes | (5.5) | (50.33) |
Net income | 10.6 | 93.47 |
Price per share | $16 | $15 |
Sharing outstanding (millions) | 10.2 | 8.0 |
Stock options outstanding (millions) | 0.3 | 0.2 |
Stockholders' Equity | 126.6 | 63.6 |
Total Liabilities and Stockholders' Equity | 533.1 | 386.7 |
Refer to the income statement above. Luther's operating margin for the year ending December 31, 2005 is closest to:
A.
13.7413.74%
B.
21.9921.99%
C.
27.4927.49%
D.
32.9932.99%
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