Question
The following financial statements apply to Robin Company. 2015 2014 Revenues Net sales $ 211,500 $ 176,300 Other revenues 8,900 6,300 Total revenues 220,400 182,600
The following financial statements apply to Robin Company.
2015 | 2014 | |||||
Revenues | ||||||
Net sales | $ | 211,500 | $ | 176,300 | ||
Other revenues | 8,900 | 6,300 | ||||
Total revenues | 220,400 | 182,600 | ||||
Expenses | ||||||
Cost of goods sold | 125,000 | 102,200 | ||||
Selling expenses | 19,600 | 17,600 | ||||
General and administrative expenses | 10,100 | 9,100 | ||||
Interest expense | 2,600 | 2,600 | ||||
Income tax expense | 19,200 | 17,000 | ||||
Total expenses | 176,500 | 148,500 | ||||
Earnings from continuing operations before extraordinary items | 43,900 | 34,100 | ||||
Extraordinary gain (net of $2,600 tax) | 3,800 | 0 | ||||
Net income | $ | 47,700 | $ | 34,100 | ||
Assets | ||||||
Current assets | ||||||
Cash | $ | 5,600 | $ | 7,500 | ||
Marketable securities | 1,000 | 1,000 | ||||
Accounts receivable | 36,300 | 30,100 | ||||
Inventories | 101,900 | 94,300 | ||||
Prepaid expenses | 4,600 | 3,600 | ||||
Total current assets | 149,400 | 136,500 | ||||
Plant and equipment (net) | 105,100 | 105,100 | ||||
Intangibles | 20,600 | 0 | ||||
Total assets | $ | 275,100 | $ | 241,600 | ||
Liabilities and Stockholders Equity | ||||||
Liabilities | ||||||
Current liabilities | ||||||
Accounts payable | $ | 39,700 | $ | 54,700 | ||
Other | 15,200 | 15,600 | ||||
Total current liabilities | 54,900 | 70,300 | ||||
Bonds payable | 65,300 | 66,300 | ||||
Total liabilities | 120,200 | 136,600 | ||||
Stockholders equity | ||||||
Common stock (41,000 shares) | 114,700 | 114,700 | ||||
Retained earnings | 40,200 | (9,700 | ) | |||
Total stockholders equity | 154,900 | 105,000 | ||||
Total liabilities and stockholders equity | $ | 275,100 | $ | 241,600 | ||
Required |
Calculate the following ratios for 2014 and 2015. When data limitations prohibit computing averages, use year-end balances in your calculations. |
a. | Net margin. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)
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