Problem 4: Income Statement Metrics/Percentages

Use the following info to answer these next few questions:

Use the following to answer questions 81-83:

Selected financial data from Harmon Company from the most recent year appear below:

Sales .............................................. $150,000

Cost of goods sold ......................... $75,000

Dividend declared and paid ........... $5,000

Interest expense ............................. $10,000

Operating expenses ....................... $25,000

The income tax rate is 30%Use the following to answer questions 81-83: Selected financial data from Harmon Company from the most recent year appear below:

Sales .............................................. $150,000

Cost of goods sold ......................... $75,000

Interest expense ............................. $10,000

Operating expenses ....................... $25,000

Dividend declared and paid ........... $5,000

Income Tax is 30%

a. Net operating income as a percentage of sales is closest to:

A) 50%

B) 27%

C) 19%

D) 33%

b. After-tax Net income as a percentage of sales is closest to:

A) 19%

B) 27%

C) 33%

D) 50%

c. Gross margin as a percentage of sales is closest to:

A) 27%

B) 50%

C) 33%

D) 19%