Using the balance sheet an income statement below, calculate profit margin. Balance Sheet Assets Current Assets Cash
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Question:
Using the balance sheet an income statement below, calculate profit margin.
Balance Sheet | |||
Assets | |||
Current Assets | |||
Cash | $52,200 | ||
Marketable Securities | $24,400 | ||
Accounts Receivable (net) | $222,000 | ||
Inventory | $238,000 | ||
Total Current Assets | $536,600 | ||
Investments | $65,900 | ||
Plant and Equipment | $615,000 | ||
Less: Accumulated Depreciation | ($271,000) | ||
Net: Plant and Equipment | $344,000 | ||
Total Assets | $946,500 | ||
Liabilities and Stockholders Equity | |||
Current Liabilities | |||
Accounts Payable | $93,400 | ||
Notes Payable | $70,600 | ||
Accrued Taxes | $17,000 | ||
Total Current Liabilities | $181,000 | ||
Long Term Liabilities | |||
Bonds Payable | $153,200 | ||
Total Liabilities | $334,200 | ||
Stockholders Equity | |||
Preferred Stock, $50 par | $100,000 | ||
Common Stock, $1 par | $80,000 | ||
Capital paid in excess of par | $190,000 | ||
Retained Earnings | $242,300 | ||
Total Stockholders Equity | $612,300 | ||
Total liabilities and stockholders equity | $946,500 | ||
Income Statement | |||
Sales | $2,064,000 | ||
Cost of Goods Sold | $1,313,000 | ||
Gross Profit | $751,000 | ||
Selling and Admin Expenses | $496,000 | ||
Operating Profit | $255,000 | ||
Interest Expense | $26,900 | ||
Earnings before tax | $228,100 | ||
Taxes | $83,300 | ||
Earnings after tax | $144,800 |
Posted Date: