Local Co. has sales of $10.8 million and cost of sales of $5.7 million. Its selling,...

Question

Question

business finance

Answer 1

Answer #1

Answer:

As per given data, lets first make the income statement of subject company:

Now let us calculate the required ratios:

1. Gross profit margin = Gross profit / Total Sales Revenue = 5100000/10800000 = 47.2%

2. Operating Margin = Operating Income / Total Sales Revenue = 2310000/10800000 = 21.4%

3. Net profit margin = Net income / Total Sales Revenue = 1501500/10800000 = 13.9%

Answer 2

Similar Homework Help Questions

Local Co. has sales of $ 10.3 million and cost of sales of $ 5.7 million....

Local Co. has sales of $ 10.3 million and cost of sales of $ 5.7 million. Its selling, general and administrative expenses are $ 530 comma 000 and its research and development is $ 1.2 million. It has annual depreciation charges of $ 1.4 million and a tax rate of 35 %. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin?
Local Co. has sales of $ 10.2 million and cost of sales of $ 5.9 million....

Local Co. has sales of $ 10.2 million and cost of sales of $ 5.9 million. Its selling, general and administrative expenses are $ 510,000 and its research and development is $1.3 million. It has annual depreciation charges of $1.2 million and a tax rate of 35% a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin?
Local Co. has sales of $10.9 million and cost of sales of $5.9 million. It's selling,...

Local Co. has sales of $10.9 million and cost of sales of $5.9 million. It's selling, general and administrative expenses are $510,000 and its research and development is $11million. It has annual depreciation charges of $1.3 million and a tax rate of 35% a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin?

A company has announced total revenues of $286 million, gross profits of $150 million, operating income...

A company has announced total revenues of $286 million, gross profits of $150 million, operating income of $130 million, and net income of $51 million. What is its net profit margin? Answer in percent, rounded to one decimal place.
Maggie's Skunk Removal Corp.'s 2018 income statement listed net sales of $12.5 million, gross profit of...

Maggie's Skunk Removal Corp.'s 2018 income statement listed net sales of $12.5 million, gross profit of $6.9 million, EBIT of $5.6 million, net income available to common stockholders of $3.2 million, and common stock dividends of $1.2 million. The 2018 year-end balance sheet listed total assets of $52.5 million and common stockholders' equity of $21 million with 2 million shares outstanding. points Calculate the gross profit margin. (Round your answer to 2 decimal places.) & 02:42:34 Gross profit margin eBook...
A company has announced total revenues of $243 million, gross profits of $150 million, operating income...

A company has announced total revenues of $243 million, gross profits of $150 million, operating income of $130 million, and net income of $56 million. What is its net profit margin? Answer in percent, rounded to one decimal place. (e.g., 26.73% = 26.7)

Maggie's Skunk Removal Corp.'s 2018 income statement listed net sales of $12.5 million, gross profit of...

Maggie's Skunk Removal Corp.'s 2018 income statement listed net sales of $12.5 million, gross profit of $6.9 million, EBIT of $5.6 million, net income available to common stockholders of $3.2 million, and common stock dividends of $1.2 million. The 2018 year-end balance sheet listed total assets of $525 million and common stockholders' equity of $21 million with 2 million shares outstanding Calculate the gross profit margin. (Round your answer to 2 decimal places.) [Gross profit margin[ 5520] %! Calculate the...
Dearborn Supplies has total sales of $ 207 million, assets of $ 108 million, a return...

Dearborn Supplies has total sales of $ 207 million, assets of $ 108 million, a return on equity of 35 percent, and a net profit margin of 7.9 percent. What is the firm's debt ratio? The company's debt ratio is nothing%. (Round to one decimal place.)
Dearborn Supplies has total sales of $ 197 million, assets of $ 92 million, a return...

Dearborn Supplies has total sales of $ 197 million, assets of $ 92 million, a return on equity of 27 percent, and a net profit margin of 7.9 percent. What is the firm's debt ratio? The company's debt ratio is __ Round to one decimal place.) I got 0.37358696 and I didn't know what to round to for the correct answer

(DuPont analysis) Dearborn Supplies has total sales of $191 million, assets of $92 million, a return...

(DuPont analysis) Dearborn Supplies has total sales of $191 million, assets of $92 million, a return on equity of 25 percent, and a net profit margin of 7.9 percent. What is the firm's debt ratio? The company's debt ratio is%. (Round to one decimal place.)