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Use the information below to answer questions 9 and 10. Year 2 0.14545 121.67 1.2 30% ?? Asset Turnover Average Inventory Holding Period Debt/Equity Gross
Use the information below to answer questions 9 and 10. Year 2 0.14545 121.67 1.2 30% ?? Asset Turnover Average Inventory Holding Period Debt/Equity Gross Profit Margin Net Profit Margin Total Assets Common Equity Sales Sales Return SG & A Expenses Interest Expense Taxes EBIT Dividend P/O DTL (Degree of Total Leverage) DOL (Degree of Operating Leverage) Year 1 N/A N/A N/A N/A N/A N/A 40,000 15,000 3,000 1,500 700 900 10,500 N/A N/A N/A 110,000 40,000 20,000 4,000 2,000 800 1,000 ?? 50% 2.39 1.71 9. Year 2's net income is closest to: a $1,000. b. $2,000. C. $2,500. d. $3,000. 10. The sustainable growth rate for Year 2 is closest to: a. 1.25%. b. 2.75%. c. 3.25%. d. 4.75%
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