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sineoko [7]
2 years ago
12

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year

2. Year 2 Year 1 Net sales $ 484,000 $ 427,350 Cost of goods sold 277,400 251,220 Interest expense 10,800 11,800 Net income before tax 68,350 53,780 Net income after tax 47,150 41,000 Total assets 319,300 294,600 Total liabilities 175,900 168,400 Total equity 143,400 126,200
Business
1 answer:
nekit [7.7K]2 years ago
4 0

Answer:

Profit margin = 9.74%

Explanation:

We know,

Profit Margin = (Net income after tax/Net sales) x 100

Profit margin is a profitability ratio that measures the company's overall performance. It also show how company performs financially.

Given,

Year 2,

Net Sales = $484,000

Net income after tax = $47,150

Therefore,

Profit Margin = \frac{47,150}{484,000}

Profit Margin = 9.74%

Hence, company is performing financially well.

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During the year, ABC had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowin
shusha [124]

Answer:

$5,000

Explanation:

The computation of the amount that should be reported  for net financing cash flows is shown below:

Cash flows from financing activities

Receipt from the bank for long-term borrowing $6,000

Less: dividend paid -$1,000

Net cash flows from financing activities $5,000

The positive amount represents the cash inflow and the negative amount represent the cash outflow and the same is to be considered

8 0
2 years ago
Pettijohn Inc. The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization
Tom [10]

Answer:

The appropriate solution is "$2.91". A further explanation is given below.

Explanation:

Seems that the given question is incomplete. Below is the attachment of the full problem.

According to the question,

Common dividend,

= 509.83

Shares outstanding,

= 175

Now,

The dividend per share will be:

=  \frac{Common \ dividend}{Shares \ outstanding}

On substituting the values, we get

=  \frac{509.83}{175}

=  2.9133

or,

=  2.91

8 0
1 year ago
In November 2004, Kraft Foods sold its confectionery business to Wrigley for $1.85 billion cash, which consisted primarily of th
VMariaS [17]

Answer:

The correct answer is letter "B": Sell-off.

Explanation:

A sell-off is the rapid sale of an asset typically follow by its drastic decline in its value. For example, if ABC corporation releases a bad earning report many of its shareholders may decide to sell their shares. With many sellers and few buyers, ABC stock value will sharply fall.

Kraft Foods Inc., in November 2004, published the sell of its sugar confectionery enterprises because they had discontinued operations. They planned to restructure the organization realigning and lowering the structure cost and optimizing capacity utilization.

4 0
2 years ago
Lipstik, Inc. makes cosmetics. Lipstik intentionally mislabels its packaged products to conceal a defect. Trusting and relying o
In-s [12.5K]

Answer:

fraud

Explanation:

the company when making an action with knowledge knows that this product can cause great damage to the end customer and as such action does in the aforementioned products, it generates a fraud in quality, advertising and marketing, threatening the user

3 0
2 years ago
Fluegge Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing
Softa [21]

Answer:

$14,016 favorable

Explanation:

The computation of the raw materials price variance is shown below:

= Actual Quantity × (Standard Price - Actual Price)

= 23,360 liters × ($5.40 - $4.80)

= 23,360 liters × $0.6

= $14,016 favorable

We simply deduct the actual price from the standard price and then multiplied it by the actual quantity so that actual value can come

8 0
2 years ago
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