Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please do b-f this is one whole problem A B D 1 3 2018 McCormick Corporation 2 Income Statement For the Years Ended December 31,
Please do b-f this is one whole problem
A B D 1 3 2018 McCormick Corporation 2 Income Statement For the Years Ended December 31, 2020 and 2019 4 (amounts in thousands) 5 2020 2019 6 Sales revenues 116,650 $ 139,250 7 Less: Cost of goods sold 65,000 58,000 8 Gross profit 51,650 $ 81,250 9 Less: Operating expenses 21,000 24,000 10 Operating income $ 30,650 $ 57,250 $ 10,000 20,650 $ 11 Less: Interest expense 12 Income before income taxes 13 Less: Income tax expense 14 Net income 11,000 46,250 35,110 4,319 16,331 $ 11,140 15 16 Additional data: 17 Total assets $ $ 18 Common stockholders' equity 19 Preferred dividends 20 Common shares outstanding during the year 202,000 $ 191,000 $ 178,000 89,000 $ 89,000 $ 61,000 3,070 $ 3,070 $ 0 14,900 14,900 14,000 a. Gross profit percentage b. Operating income percentage c. Rate of return on net sales d. Rate of return on total assets e. Rate of return on common stockholders' equity f. Earnings per share of common stock Compute six ratios that measure McCormick Corporation's ability to earn profits. The company's comparative income statement follows. The data for 2018 are given as needed. (Click the icon to view the comparative income statement.) Did the company's operating performance improve or deteriorate during 2020? a. Calculate the gross profit percentage for 2019 and 2020. Identify the formula, then calculate the gross profit percentage. (Round the percentages to two decimal places, X.XX%.) Gross profit Net sales Gross profit percentage 2020 51,650 116,650 44.28 % 81,250 139,250 58.35 2019 % b. Calculate the operating income percentage for 2019 and 2020. Identify the formula, then calculate the operating income percentage. (Round the percentages to two decimal places, X.XX%.) Operating income percentage 2020 11 % 2019 %Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started