Question 6:

Company MNO has the following financial figures:

• Net Sales: $250,000
• Cost of Goods Sold: $160,000
• Administrative Expenses: $40,000
• Interest Expenses: $8,000
• Income Tax Expense: $12,000
• Dividends: $10,000

1. Calculate the Gross Profit.
2. Determine the Operating Income.
3. Calculate the Earnings Before Tax (EBT).
4. Compute the Net Income.
5. Calculate the Payout Ratio.