Question
Sales revenue $5,075,000 Less: Cost of goods sold 3,704,000 Gross profits $1,371,000 Less: Operating expenses Selling expense $650,000 General and administrative expenses 416,000 Depreciation expense
Sales revenue | $5,075,000 | |
Less: Cost of goods sold | 3,704,000 | |
Gross profits | $1,371,000 | |
Less: Operating expenses | ||
Selling expense | $650,000 | |
General and administrative expenses | 416,000 | |
Depreciation expense | 152,000 | |
Total operating expense | 1,218,000 | |
Operating profits | $153,000 | |
Less: Interest expense | 93,000 | |
Net profits before taxes | $60,000 | |
Less: Taxes (rate = 40%) | 24,000 | |
Net profits after taxes | $36,000 | |
Less: Preferred stock dividends | 3,000 | |
Earnings available for common stockholders | $33,000 | |
Earnings per share (EPS) | $0.33 |
Martin Manufacturing Company Balance Sheets | |||
December 31 | |||
Assets | 2019 | 2018 | |
Current assets | |||
Cash | $25,000 | $24,100 | |
Accounts receivable | 805,556 | 763,900 | |
Inventories | 700,625 | 763,445 | |
Total current assets | $1,531,181 | $1,551,445 | |
Gross fixed assets (at cost) | $2,093,819 | $1,691,707 | |
Less: Accumulated depreciation | 500,000 | 348,000 | |
Net fixed assets | $1,593,819 | $1,343,707 | |
Total assets | $3,125,000 | $2,895,152 | |
Liabilities and Stockholders' Equity | |||
Current liabilities | |||
Accounts payable | $230,000 | $400,500 | |
Notes payable | 311,000 | 370,000 | |
Accruals | 75,000 | 100,902 | |
Total current liabilities | $616,000 | $871,402 | |
Long-term debt | $1,165,250 | $700,000 | |
Total liabilities | $1,781,250 | $1,571,402 | |
Stockholders' equity | |||
Preferred stock (2,500 shares,$1.20 dividend) | $50,000 | $50,000 | |
Common stock (100,000 shares at$4.00 par)* | 400,000 | 400,000 | |
Paid-in capital in excess of par value | 593,750 | 593,750 | |
Retained earnings | 300,000 | 280,000 | |
Total stockholders' equity | $1,343,750 | $1,323,750 | |
Total liabilities and stockholders' equity | $3,125,000 | $2,895,152 | |
*The firm's 100,000 outstanding shares of common stock closed2019 at a price of$11.38 per share. |
Need to know NET profit margin for 2019. I know it's Earnings available for common stockholders/sales for equation, but I am struggling to find the sales #.
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