Maggie Skunk Removal Corp. 2015 income statement listed net sales of $13.6 milli

Question

Maggie Skunk Removal Corp. 2015 income statement listed net sales of $13.6 million, gross profit of $8.40 million, EBIT of $6.7 million, net income available to common stockholders of $4.3 million, and common stock dividends of $2.3 million. The 2015 year-end balance sheet listed total assets of $53.6 million and common stockholders' equity of $22.1 million with 2.0 million shares outstanding.

Profit margin = % Calculate the profit margin. (Round your answer to 2 decimal places.)

Gross profit margin = % Calculate the profit margin. (Round your answer to 2 decimal places.)

Operating profit margin =% Calculate the basic earnings power. (Round your answer to 2 decimal places.)

Basic earnings power= % Calculate the return on assets. (Round your answer to 2 decimal places.)

Return on assets= % Calculate the return on equity. (Round your answer to 2 decimal places.)

Return on equity= % Calculate the dividend payout. (Round your answer to 2 decimal places.) Dividend payout %

Explanation / Answer

profit margin =NET PROFIT/SALES= 4.3/13.7=31.386%

Gross profit margin= gross profit/sales x 100 = 8.40/13.6 x 100= 61.764%

basic earning power=EBIT/ TOTAL ASSETS= 6.7/53.6=12.5%

OPEARATING PROFIT MARGIN =operating income/sales= 6.7/13.7=48.90%

return on assets = net income/total assets= 4.3/53.6= 8.582

return on equity= net income / share holders equity= 4.3/22.1=19.457%

dividend payout ratio= dividendes paid/earnings available to share holders

2.3/4.3= 53.48%

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.