Question
XYZ, Inc. has sales of $ 40,000,000 by 2015. XYZ ratios are listed below. Sales $40,000,000 Gross Profit margin 80% Operating profit margin 35% Net
XYZ, Inc. has sales of $ 40,000,000 by 2015. XYZ ratios are listed below.
Sales | $40,000,000 |
Gross Profit margin | 80% |
Operating profit margin | 35% |
Net profit margin | 8% |
Return on total assets | 16% |
Return on common equity | 20% |
Total asset turnover | 2 |
Average collection period | 62.2 days |
Use these ratios to determine the following values from the Income Statement and the Balance Sheet
a. Gross profit b. Cost of godos sold c. Operating profit d. Operating expenses e. Earnings available for common stockholders f. Total assets g. Total common stock equity h. Account receivable
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