Ratio Analysis The following information was taken from Logsden Manufacturing's trial balances as of December 31,...

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Ratio Analysis The following information was taken from Logsden Manufacturings trial balances as of December 31, 2010, and D

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Answer 1

Answer #1

Net Sales 2011 = 274000-12000 = 262000

1) Gross profit margin percentage = Gross profit/Net Sales = (262000-140000)/262000 = 46.56%

2) Operating margin percentage = Income from operation/Net Sales = 26100/262000 = 9.96%

b) Operating expense = 262000-140000-26100 = 95900

Net Sales = 262000*1.25 = 327500

Gross margin = 327500*46.56% = 152484

Operating margin percentage = (152484-95900)/327500 = 17.28%

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Answer 2

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Ratio Analysis The following information was taken from Logsden Manufacturing's trial balances as of December 31,...

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