Question

Assume a company's Income Statement for Year 12 is as follows: Income Statement Data Year 12 (in 000s) Net Revenues from Footwear Sales $ 580,000 Cost of Pairs Sold 350,000 Warehouse Expenses 45,000 Marketing Expenses 90,000 Administrative Expenses 15,000 Operating Profit (Loss) 80,000 Interest Income (Expense) (20,000) Pre-tax Profit (Loss) 60,000 Income Taxes 18,000 Net Profit (Loss) $ 42,000 Based on the above income statement data and assuming the company has 20 million shares of common stock outstanding , the company's operating profit margin and EPS were 6.67% and $2.10.7.24% and $2.20.9.7% and $2.10. 10.34% and $3.20. 13.79% and $2.10.

Answer 1

Answer:

13.79% and $2.10

Explanation:

Operating Profit Margin= ( Operating Profit/Sales)*100

                                       =(80,000/580,000)*100=13.79%

EPS= Net income/Shares outstanding

      =42,000/20,000=$2.10

Please note that amounts have been taken as $ in '000'