Net Sales Cost of Goods Sold $15,000,000 $5,00,000 Gross Profit Depreciation Expense S&A Expenses $10,000,000 $2,000,000 $800,000 ----------------- Operating Income (EBIT) Interest Expense $7,200,000 $1,710,000 ----------------- Income before Taxes Income Taxes (25%) Combined Federal and State $5,490,000 $1,373,000 ---- Net Income $4,117,000 ----------------- $1.00 $400,000 Earnings Per Share (4,117,000 shares) Common Stock Dividends Paid ----------- | Change in Retained Earnings $3,717,000 Use Table 5-1 42. The net profit margin is: a. 16.2% b. 37% C. 60% d. 13.7% 43. The quick ratio is: a. 0.63 b. 1.20 C. 8.33 d. 0.29 44. The Times Interest Earned ratio is: a. 3.7 b. 0.27 C. 2.7 d. 0.62 45. The Earnings Per Share is: a. $2.14 b. $3.24 C. $1.83 d. $2.74 46. The Gross Profit Margin is: a. 40% b. 60% c. 16.2% d. 37% 17 The Return on Ascote ratin is. 47. The Return on Assets ratio is: a. 0.162% b. 3.81% C. 16.2% d. 13.7% 48. The Operating Profit Margin is: a. 13.6% b. 16.2% c. 60% d. 37% 49. The market to book ratio is a. 6.57 b. 0.90 C. 0.15 d. 0.51 50. The Debt to Equity ratio is: a. 0.31% b. 1.43 times c. 3.25 d. 0.70% Net Sales Cost of Goods Sold $15,000,000 $5,00,000 Gross Profit Depreciation Expense S&A Expenses $10,000,000 $2,000,000 $800,000 ----------------- Operating Income (EBIT) Interest Expense $7,200,000 $1,710,000 ----------------- Income before Taxes Income Taxes (25%) Combined Federal and State $5,490,000 $1,373,000 ---- Net Income $4,117,000 ----------------- $1.00 $400,000 Earnings Per Share (4,117,000 shares) Common Stock Dividends Paid ----------- | Change in Retained Earnings $3,717,000 Use Table 5-1 42. The net profit margin is: a. 16.2% b. 37% C. 60% d. 13.7% 43. The quick ratio is: a. 0.63 b. 1.20 C. 8.33 d. 0.29 44. The Times Interest Earned ratio is: a. 3.7 b. 0.27 C. 2.7 d. 0.62 45. The Earnings Per Share is: a. $2.14 b. $3.24 C. $1.83 d. $2.74 46. The Gross Profit Margin is: a. 40% b. 60% c. 16.2% d. 37% 17 The Return on Ascote ratin is. 47. The Return on Assets ratio is: a. 0.162% b. 3.81% C. 16.2% d. 13.7% 48. The Operating Profit Margin is: a. 13.6% b. 16.2% c. 60% d. 37% 49. The market to book ratio is a. 6.57 b. 0.90 C. 0.15 d. 0.51 50. The Debt to Equity ratio is: a. 0.31% b. 1.43 times c. 3.25 d. 0.70%