Source: Company files. MARGINS Homework Unanswered Calculate the NET PROFIT (NET EARNINGS) MARGIN for Charles Chocolates for both years and enter below as a 10th of a percent, first 2010 and then followed by 2011 (separated by a semi-colon). Pay attention to the order of the years in the financial statements when listing your answers. You must enter your answer in the following format: xx.x%; yy.y% [For example: 10.3%; 12.8% (for demonstration only; these are not the answers) This example indicates that the NET PROFIT MARGIN in 2010 is 10.3% and the NET PROFIT MARGIN in 2011 is 12.8%.] Type your answer and submit Year ended March 31 Selling Advertising & Promotion Bad debts Credit card charges Mail order Office & Telephone Postage and freight Stores: Factory Store Sandwich Heaven Portland Fore Street Cruise Ship Terminals Dept. Store Boston (closed in 2006) Dept. Store Portland (closed in 2006) Bar Harbour downtown Portland Arts District Portsmouth Royalties Salaries & benefits Travel Total Less: postage and freight recoveries 2011 $489,345 23,000 125,198 118,606 29,975 483,003 112,885 572,495 75,854 42,709 3,938 4,236 2010 $536,886 12,796 125,544 133,081 27,274 476,724 122,897 323,995 84,047 38,592 4,058 2,759 24,179 119,058 182,939 31,099 715,325 46,830 3,013,658 369,823 2,638, 260 135, 267 24,404 20,882 107,379 Admin Amortization Automotive Bank charges and interest Consulting Foreign exchange Insurance Management fees Office supplies and postage Professional fees Rent, property taxes and utilities Repairs and maintenance Stores: Sandwich Heaven Portland Fore Street Cruise Ship Terminals Dept. Store Boston Dept. Store Portland Bar Harbor Downtown Portland Arts District Portsmouth Salaries and benefits Telecommunications Travel and promotion Total Admin Expenses TOTAL S, G & A Expenses 87,103 168,157 29,862 812,269 68,364 3,246,999 343 116 2.903,883 196,970 28,658 22,533 102,241 -6,272 80,704 191,226 134,159 42,872 61,211 18,378 326,901 26,559 22,038 10,082 32,123 78,777 183,627 118,582 67,952 56,815 21,105 179,834 28, 159 26,927 18,251 37,939 14,647 45,002 105,720 1,030,336 32,588 34,692 $2,368,885 $5,007,145 49,849 112,450 810,049 27,824 27,082 $2,317,637 $5,221,520 bit 5: Consolidated Balance Sheet March 31 2011 2010 $ 112,185 358,969 750,948 461,874 Assets Current Cash Receivables Inventories Packaging materials Raw materials Work in progress Manufactured finished goods Finished goods for resale 620,452 169,235 89,146 643,105 21,878 1,543,816 103,136 127,515 84,620 2,330,241 576,287 179,119 66,467 692,517 36,241 1,550,631 76,822 Investments Income taxes receivable Prepaids 56,566 2,896,842 4,364,527 3,922, 183 Property and equipment (see Note 1) Intangible assets Goodwill Trademarks Total Intangible Assets TOTAL ASSETS 916,999 783,596 1,700,595 $ 8,395,363 916,999 783,596 1,700,595 $ 8,519,620 $ Liabilities Current Bank indebtedness Payables and accruals Income taxes payable Current portion of long term debt 186,929 1,098,232 $ 599,146 1,226,570 127,845 373,405 2,326,966 1,411, 184 3,738,150 419,971 1,705,132 1,017,679 2,722,811 Long term debt TOTAL LIABILITIES Shareholders' Equity Capital stock Retained earnings TOTAL EQUITY 32,860 5,639,691 5,672,551 32,860 4,748,611 4,781,471 TOTAL LIABILITIES & EQUITY $ 8,395,362 $ 8,519,62 1 Exhibit 5 (continued) Note 1 Property and equipment 2011 2010 Accumulated Amortization Net Book Value Net Book Value Cost Land Buildings Manufacturing equipment Furniture and fixtures Office equipment Computer equipment Leasehold improvements 1,219,819.20 2,799,181.35 1,693,140.69 749,496.78 108,352 86 250,683.90 914,332.83 1,099,926.90 1,375,596.00 385,684.35 90,299.22 225,157 26 193,817.19 1,219,819.20 1,699 254.45 317 544.69 363,812.43 18,053.64 25,526.64 720,515.64 1,219 819 20 1,770.056.19 231.858.99 249 376.83 24020.76 53 214.81 373 836.12 7,735,007.61 3,370,480.92 4,364,526.69 3.922 182.90 Source: Company files. MARGINS Homework Unanswered Calculate the NET PROFIT (NET EARNINGS) MARGIN for Charles Chocolates for both years and enter below as a 10th of a percent, first 2010 and then followed by 2011 (separated by a semi-colon). Pay attention to the order of the years in the financial statements when listing your answers. You must enter your answer in the following format: xx.x%; yy.y% [For example: 10.3%; 12.8% (for demonstration only; these are not the answers) This example indicates that the NET PROFIT MARGIN in 2010 is 10.3% and the NET PROFIT MARGIN in 2011 is 12.8%.] Type your answer and submit Year ended March 31 Selling Advertising & Promotion Bad debts Credit card charges Mail order Office & Telephone Postage and freight Stores: Factory Store Sandwich Heaven Portland Fore Street Cruise Ship Terminals Dept. Store Boston (closed in 2006) Dept. Store Portland (closed in 2006) Bar Harbour downtown Portland Arts District Portsmouth Royalties Salaries & benefits Travel Total Less: postage and freight recoveries 2011 $489,345 23,000 125,198 118,606 29,975 483,003 112,885 572,495 75,854 42,709 3,938 4,236 2010 $536,886 12,796 125,544 133,081 27,274 476,724 122,897 323,995 84,047 38,592 4,058 2,759 24,179 119,058 182,939 31,099 715,325 46,830 3,013,658 369,823 2,638, 260 135, 267 24,404 20,882 107,379 Admin Amortization Automotive Bank charges and interest Consulting Foreign exchange Insurance Management fees Office supplies and postage Professional fees Rent, property taxes and utilities Repairs and maintenance Stores: Sandwich Heaven Portland Fore Street Cruise Ship Terminals Dept. Store Boston Dept. Store Portland Bar Harbor Downtown Portland Arts District Portsmouth Salaries and benefits Telecommunications Travel and promotion Total Admin Expenses TOTAL S, G & A Expenses 87,103 168,157 29,862 812,269 68,364 3,246,999 343 116 2.903,883 196,970 28,658 22,533 102,241 -6,272 80,704 191,226 134,159 42,872 61,211 18,378 326,901 26,559 22,038 10,082 32,123 78,777 183,627 118,582 67,952 56,815 21,105 179,834 28, 159 26,927 18,251 37,939 14,647 45,002 105,720 1,030,336 32,588 34,692 $2,368,885 $5,007,145 49,849 112,450 810,049 27,824 27,082 $2,317,637 $5,221,520 bit 5: Consolidated Balance Sheet March 31 2011 2010 $ 112,185 358,969 750,948 461,874 Assets Current Cash Receivables Inventories Packaging materials Raw materials Work in progress Manufactured finished goods Finished goods for resale 620,452 169,235 89,146 643,105 21,878 1,543,816 103,136 127,515 84,620 2,330,241 576,287 179,119 66,467 692,517 36,241 1,550,631 76,822 Investments Income taxes receivable Prepaids 56,566 2,896,842 4,364,527 3,922, 183 Property and equipment (see Note 1) Intangible assets Goodwill Trademarks Total Intangible Assets TOTAL ASSETS 916,999 783,596 1,700,595 $ 8,395,363 916,999 783,596 1,700,595 $ 8,519,620 $ Liabilities Current Bank indebtedness Payables and accruals Income taxes payable Current portion of long term debt 186,929 1,098,232 $ 599,146 1,226,570 127,845 373,405 2,326,966 1,411, 184 3,738,150 419,971 1,705,132 1,017,679 2,722,811 Long term debt TOTAL LIABILITIES Shareholders' Equity Capital stock Retained earnings TOTAL EQUITY 32,860 5,639,691 5,672,551 32,860 4,748,611 4,781,471 TOTAL LIABILITIES & EQUITY $ 8,395,362 $ 8,519,62 1 Exhibit 5 (continued) Note 1 Property and equipment 2011 2010 Accumulated Amortization Net Book Value Net Book Value Cost Land Buildings Manufacturing equipment Furniture and fixtures Office equipment Computer equipment Leasehold improvements 1,219,819.20 2,799,181.35 1,693,140.69 749,496.78 108,352 86 250,683.90 914,332.83 1,099,926.90 1,375,596.00 385,684.35 90,299.22 225,157 26 193,817.19 1,219,819.20 1,699 254.45 317 544.69 363,812.43 18,053.64 25,526.64 720,515.64 1,219 819 20 1,770.056.19 231.858.99 249 376.83 24020.76 53 214.81 373 836.12 7,735,007.61 3,370,480.92 4,364,526.69 3.922 182.90