Maggie’s Skunk Removal Corp.’s 2015 income statement listed net sales of $12.5 m

Question

Maggie’s Skunk Removal Corp.’s 2015 income statement listed net sales of $12.5 million, gross profit of $6.90 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 2015 year-end balance sheet listed total assets of $52.5 million and common stockholders' equity of $21.0 million with 2.0 million shares outstanding.

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

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

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

Calculate the basic earnings power. (Round your answer to 2 decimal places.)

Calculate the return on assets. (Round your answer to 2 decimal places.)

Calculate the return on equity. (Round your answer to 2 decimal places.)

Calculate the dividend payout. (Round your answer to 2 decimal places.)

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

Explanation / Answer

Profit margin=3.2/12.5=25.60%

Gross profit margin=6.90/12.5=55.20%

operating profit margin=5.6/12.5=44.80%

basic earnings power=EBIT/ASSETS=5.6/52.5=10.67%

return on assets=net income/assets=3.2/52.5=6.10%

return on equity=net income/equity=3.2/21.0=15.24%

Dividend payout=1.2/3.2=37.50%

the above are the answers

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