Please answer the following questions on problem one, SHOWING ALL WORK ACCORDINGLY. Thank you.

Local Co. has sales of $10.1 million and cost of sales of $6.5 million. Its selling, general and administrative expenses are $450,000 and its research and development is $1.4 million. It has annual depreciation charges of $1.4 million and a tax rate of 25%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin? Local's gross margin is %. (Round to one decimal place.) b. What is Local's operating margin? Local's operating margin is %. (Round to one decimal place.) Chutes \& Co. has interest expense of $1.44 million and an operating margin of 10.5% on total sales of $30.1 million. What is Chutes' interest coverage ratio? The interest coverage ratio is times. (Round to one decimal place.) JPJ Corp has sales of $1.17 million, accounts receivable of $50,000, total assets of $5.03 million (of which $2.92 million are fixed assets), inventory of $146,00 and cost of goods sold of $599,000. What is JPJ's accounts receivable days? Fixed asset turnover? Total asset turnover? Inventory turnover? What is JPJ's accounts receivable days? JPJ's accounts receivable days are days. (Round to two decimal places.) In January 2019 , United Airlines (UAL) had a market capitalization of $22.91 billion, debt of $13.52 billion, and cash of $4.02 billion. United Airlines had revenues of $41.23 billion. Southwest Airlines (LUV) had a market capitalization of $27.56 billion, debt of $3.24 billion, cash of $3.82 billion, and revenues of $21.85 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. c. Which of these comparisons is more meaningful? Explain. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. The market capitalization-to-revenue ratio for United Airlines is (Round to three decimal places.)

Question

Please answer the following questions on problem one, SHOWING ALL WORK ACCORDINGLY. Thank you.

image text in transcribed

Local Co. has sales of $10.1 million and cost of sales of $6.5 million. Its selling, general and administrative expenses are $450,000 and its research and development is $1.4 million. It has annual depreciation charges of $1.4 million and a tax rate of 25%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin? Local's gross margin is %. (Round to one decimal place.) b. What is Local's operating margin? Local's operating margin is %. (Round to one decimal place.) Chutes \& Co. has interest expense of $1.44 million and an operating margin of 10.5% on total sales of $30.1 million. What is Chutes' interest coverage ratio? The interest coverage ratio is times. (Round to one decimal place.) JPJ Corp has sales of $1.17 million, accounts receivable of $50,000, total assets of $5.03 million (of which $2.92 million are fixed assets), inventory of $146,00 and cost of goods sold of $599,000. What is JPJ's accounts receivable days? Fixed asset turnover? Total asset turnover? Inventory turnover? What is JPJ's accounts receivable days? JPJ's accounts receivable days are days. (Round to two decimal places.) In January 2019 , United Airlines (UAL) had a market capitalization of $22.91 billion, debt of $13.52 billion, and cash of $4.02 billion. United Airlines had revenues of $41.23 billion. Southwest Airlines (LUV) had a market capitalization of $27.56 billion, debt of $3.24 billion, cash of $3.82 billion, and revenues of $21.85 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. b. Compare the enterprise value-to-revenue ratio for United Airlines and Southwest Airlines. c. Which of these comparisons is more meaningful? Explain. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for United Airlines and Southwest Airlines. The market capitalization-to-revenue ratio for United Airlines is (Round to three decimal places.)