Question 1 (5 points)

Given the following Income Statement Information:

Consolidated Income Statement - USD ($)

$ in Millions

Operating Revenue: $ 15,128

Cost of Revenue: $ 9,208

What is the Gross Margin for this company, expressed as a percentage?

Your Answer:

Question 2 (5 points)

Given the following Income Statement Information:

Consolidated Income Statement - USD ($)

$ in Millions

Operating Revenue: $ 18,241

Cost of Revenue: $ 8,400

General & Admin: $1,875

Selling Expense: $1,200

Depreciation Exp. $1,139

What is the Operating Margin for this company, expressed as a percentage?

Your Answer:

Question 3 (5 points)

Given the following Income Statement Information:

Consolidated Income Statement - USD ($)

$ in Thousands

Net Sales Revenue: $ 3,190,574

Operating Income: $ 373,906

Interest Expense: $ 74,242

Income Taxes: $ 67,304

What is the Net Profit Margin for this company, expressed as a percentage?

Your Answer:

Question 4 (5 points)

Vandaley Industries is planning to introduce a high-efficiency vacuum cleaner. The cost of the vacuum is $94 and they sell it for $219. What is the gross margin for this vacuum cleaner, expressed as a percentage?

Your Answer:

Question 5 (5 points)

Kamakaze Drums is designing a new entry-level drum set that they want to be able to sell for $999. They want to have a gross margin of 45%. What must the cost of the new drum set be to meet these targets?

Your Answer:

Question 6 (5 points)

Bobby's Bongos is designing a new entry-level set of Bongo Drums. The company targets a 41% gross margin on its products. They have estimated the cost of manufacturing the new entry-level Bongo Drum to be $112. If that is the case, what should the selling price be to generate the company's target gross margin?

Your Answer:

Question 7 (5 points)

Flavors 'R Us provides flavorings to the food industry. They are purchasing a new emulsifier for $237,000. The company is using a service life of 6 years and a salvage value of $12,000.

What is the annual depreciation expense for this piece of equipment?

Your Answer:

Question 8 (5 points)

$ in thousands

Assets

Current Assets

Cash $2,730

Accounts Receivable $861

Inventory

Finished Goods $567

Raw Materials $1,231

Supplies $335

Total Current Assets $5,724

Property, Plant & Equipment

Equipment $4,375

Less: Accumulated Depreciation $2,588

Total Property, Plant & Equipment $6,963

Liabilities

Current Liabilities

Accounts Payable $842

Total Current Liabilities $842

Long Term Liabilities

Bank Loan $2,444

Total Long Term Liabilities $2,444

What is the Owners Equity?

Your Answer:

Question 9 (5 points)

Given the following Balance Sheet and Income Statement information:

Balance Sheet

Total Assets: $1,305,285

Total Liabilities: $587,506

Income Statement

Earnings Before Income Tax: $210,534

Income Tax Expense: $44,529

What is the Return on Equity?

Your Answer:

Question 10 (5 points)

Given the following balance sheet information:

Liabilities

Current Liabilities

Accounts Payable $45,840

Total Current Liabilities $45,840

Long Term Liabilities

Bank Loan $240,273

Total Long Term Liabilities $240,273

Owner's Equity: $544,416

Calculate the Debt/Equity ratio.

Your Answer: