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You are a financial analyst at BlueSky Industries, a manufacturing company that produces electronic components. The company has provided you with the following information for
You are a financial analyst at BlueSky Industries, a manufacturing company that produces electronic components. The company has provided you with the following information for the year ended December 31, 2023:
- BlueSky Industries had total sales revenue of $10,000,000.
- Cost of goods sold amounted to $6,000,000.
- Selling and administrative expenses totaled $1,500,000.
- Depreciation expense for the year was $400,000.
- The company's income tax rate is 30%.
- BlueSky Industries began the year with $2,000,000 in inventory and ended the year with $1,500,000 in inventory.
Requirements:
- Calculate the gross profit for BlueSky Industries for the year ended December 31, 2023.
- Determine the operating income of BlueSky Industries.
- Calculate the net income of BlueSky Industries for the year ended December 31, 2023.
- Compute the company's gross profit margin for the year.
- Compute the company's operating profit margin for the year.
- Compute the company's net profit margin for the year.
- Calculate the inventory turnover ratio for BlueSky Industries.
- Determine the average days to sell inventory for BlueSky Industries.
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