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Selected financial data for Wilmington Corporation is presented below. WILMINGTON CORPORATION Balance Sheet Dec. 31, Year 7 Dec. 31, Year 6 Current Assets Cash and
Selected financial data for Wilmington Corporation is presented below.
WILMINGTON CORPORATION | ||
---|---|---|
Balance Sheet | ||
Dec. 31, Year 7 | Dec. 31, Year 6 | |
Current Assets | ||
Cash and cash equivalents | $576,843 | $305,088 |
Marketable securities | 166,106 | 187,064 |
Accounts receivable (net) | 258,387 | 289,100 |
Inventories | 424,493 | 391,135 |
Prepaid expenses | 55,369 | 25,509 |
Other current assets | 83,053 | 85,029 |
Total Current Assets | 1,564,251 | 1,282,925 |
Property, plant and equipment | 1,384,217 | 625,421 |
Long-term investment | 568,003 | 425,000 |
Total Assets | $3,516,471 | $2,333,346 |
Current Liabilities | ||
Short-term borrowings | $306,376 | $170,419 |
Current portion of long-term debt | 155,000 | 168,000 |
Accounts payable | 254,111 | 286,257 |
Accrued liabilities | 273,658 | 166,983 |
Income taxes payable | 97,735 | 178,911 |
Total Current Liabilities | 1,086,880 | 970,570 |
Long-term debt | 500,000 | 300,000 |
Deferred income taxes | 215,017 | 262,404 |
Total Liabilities | 1,801,897 | 1,532,974 |
Common stock | $425,250 | $125,000 |
Additional paid-in capital | 356,450 | 344,335 |
Retained earnings | 932,874 | 331,037 |
Total Stockholders' Equity | 1,714,574 | 800,372 |
Total Liabilities and Stockholders' Equity | $3,516,471 | $2,333,346 |
Selected Income Statement Data for the year ending December 31, Year 7 | |
---|---|
Net sales | $4,885,340 |
Cost of goods sold | (2,942,353) |
Selling expenses | (884,685) |
Operating income | 1,058,302 |
Interest expense | (55,240) |
Earnings before income taxes | 1,003,062 |
Income tax expense | (401,225) |
Net income | $601,837 |
Selected Statement of Cash Flow Data for the year ending December 31, Year 7 | |
---|---|
Cash flows from operations | $1,456,084 |
Capital expenditures | $745,862 |
Required What was Wilmington Corporations net operating profit margin (NOPM) in Year 7? Assume a statutory tax rate of 37%.
Select one:
a. 13.9%
b. 30.3%
c. 13.0%
d. 29.2%
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