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Use the financial statements below to calculate the firm's net profit margin: Balance Sheet (Millions of $) Assets 2010 Cash and securities $ 1,554.0 Accounts
Use the financial statements below to calculate the firm's net profit margin:
Balance Sheet (Millions of $) | |
Assets | 2010 |
Cash and securities | $ 1,554.0 |
Accounts receivable | 9,660.0 |
Inventories | 13,440.0 |
Total current assets | $24,654.0 |
Net plant and equipment | 17,346.0 |
Total assets | $42,000.0 |
Liabilities and Equity | |
Accounts payable | $ 7,980.0 |
Notes payable | 5,880.0 |
Accruals | 4,620.0 |
Total current liabilities | $18,480.0 |
Long-term bonds | 10,920.0 |
Total debt | $29,400.0 |
Common stock | 3,360.0 |
Retained earnings | 9,240.0 |
Total common equity | $12,600.0 |
Total liabilities and equity | $42,000.0 |
Income Statement (Millions of $) | 2010 |
Net sales | $58,800.0 |
Operating costs except depr'n | $54,978.0 |
Depreciation | $ 1,029.0 |
Earnings bef int and taxes (EBIT) | $ 2,793.0 |
Less interest | 1,050.0 |
Earnings before taxes (EBT) | $ 1,743.0 |
Taxes | $ 610.1 |
Net income | $ 1,133.0 |
Other data: | |
Shares outstanding (millions) | 175.00 |
Common dividends | $ 509.83 |
Int rate on notes payable & L-T bonds | 6.25% |
Federal plus state income tax rate | 35% |
Year-end stock price | $ 77.69 |
Select one:
A.1.93%
B.1.40%
C.1.56%
D.1.73%
E.2.12%
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