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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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