Scenario 1 The financial statements and data shown below are to be used for the next three (3) questions All figures are in millions except the tax rate and the year end stock price BALANCE SHEET Cash S 140 0 Accounts payable S 800 0 Accts receivable 880 0 Notes payable 600 0 Inventories 1 320 0 Accruals 400 0 Total current assets $2,340 0 Total current liabilities $1,800 0 Long term bonds 1 000 0 Total debt $2,800 0 Common stock 200 0 Retained earnings 1 000 0 Net plant equip 1 660 0 Total common equity $1 200 0 Total assets $4 000 0 Total liabilities equity $4 000 0 INCOME STATEMENT Net sales $6 000 0 Operating costs 5,599 8 Depreciation 1002 EBIT S 300 0 Less Interest 96 0 EBT S 204 0 Less Taxes 81 6 Net income S 122 4 OTHER DATA Shares outstanding Common dividends Federal plus state income tax rate Year end stock price 60 00 $42 8 40 $30 60 Use Scenario 1 to answer the question What is the firm's net profit margin 6 5896 1 58 3 7496 2 04 2 95

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Scenario 1 The financial statements and data shown below are to be used for the next three (3) questions  All figures are in millions except the tax rate and the year end stock price  BALANCE SHEET Cash S 140 0 Accounts payable S 800 0 Accts receivable 880 0 Notes payable 600 0 Inventories 1 320 0 Accruals 400 0 Total current assets $2,340 0 Total current liabilities $1,800 0 Long term bonds 1 000 0 Total debt $2,800 0 Common stock 200 0 Retained earnings 1 000 0 Net plant   equip 1 660 0 Total common equity $1 200 0 Total assets $4 000 0 Total liabilities   equity $4 000 0 INCOME STATEMENT Net sales $6 000 0 Operating costs 5,599 8 Depreciation 1002 EBIT S 300 0 Less  Interest 96 0 EBT S 204 0 Less  Taxes 81 6 Net income S 122 4 OTHER DATA Shares outstanding Common dividends Federal plus state income tax rate Year end stock price 60 00 $42 8 40  $30 60 Use Scenario 1 to answer the question  What is the firm's net profit margin  6 5896 1 58  3 7496 2 04  2 95

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Scenario 1 The financial statements and data shown below are to be used for the next three (3) questions. All figures are in millions except

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