Moving to another question will save this response. Question 38 Usin g the finan

Question

Moving to another question will save this response. Question 38 Usin g the financial data below, answer the following questions to assess the financial strength of this company. 2016 2015 2014 2013 Sales Cost of Goods Sold Gross Income $89,950 ! $853201 $93,580| $86,833 34,261 32,780 33,038 27,078 5 $52,540 60,542 $59,755 33,418 32,68042,56432,102 $22,271 $19,860 $17,978 $27,653 $55,689 Operating Expenses Income 509 2,953 867 6,314 5,746 1,134 Interest Expense Taxes 1,945 Net Income $19,39416,398 S10,530$21,040 $132,238|$113,239| s96,4 701 s851708 22,431| 18:27 17,908 19,544 2,181 2.251 2.902 2,660 Total Current Assets$162,696 $139,660 $122,797 $114,246 S250,312 $193,468 $174,472 172,384 Total Current Liabilities! $5,745 $59,357· $49,647. s4s635 $162,601 $121471 $94,389 $82,600 Cash Total Assets 1. What is the Compound Annual Growth Rate of Revenue over the entire re porting period? (answer in percent to the first d

Explanation / Answer

1 Compounded annual growth rate of revenue = (Revenue in 2016/ Revenue in 2013 ) ^ ( 1 / 4) -1 =(89950/86833) ^ (1/4) - 1 =0.9% 2 Revenue growth in 2016= (Revenue in 2016/ Revenue in 2015) -1 =(89950/85320)-1 =5.4% 3 Gross margin in 2016= Gross Income / Revenue * 100 =55689/89950 *100 =61.9% 4 Operating Margin in 2016= Operating income / Revenue * 100 =22271/89950 * 100 = 24.8% 5 Net margin in 2016 = Net income / Revenue * 100 =19394/89950 * 100 = 21.6% Please hit the like button if the answer helped you else leave a comment for further clarification. Thank you! All the best!

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