Thanku i will remember u :-) St. McStanky Beer Co. Income Statement For the Year Ending on December 31 (Millions of dollars)Year 2 Year 15,0804,0001,3651,268254160Net SalesOperating costs except depreciation and amortizationDepreciation and amortizationTotal Operating CostsOperating Income (or EBIT)Less: InterestEarnings before taxes (EBT)Less: Taxes (25%)Net IncomeRatioOperating marginProfit marginReturn on total assetsReturn on common equityBasic earning powerValueYear 2Calculate the profitability ratios of St. McStanky Beer Co. in the following table. Convert all calculations to a percentage rounded to two decimalplaces.45.98%23.02%Year 164.30%1,6193,46134617.85%33.56%3,1157792,3361,4282,5723342,2385601,678

Financial ratios are based on the mathematical relationship between two financial line items.We use…

Calculate the profitability ratios of St. McStanky Beer Co. in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Operating margin Profit margin Value Year 2 45.98% Year 1 64.30%

Calculate the profitability ratios of St. McStanky Beer Co. in the following table. Convert all calculations to a percentage rounded to two decimal places. Ratio Operating margin Profit margin Value Year 2 45.98% Year 1 64.30%

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.2.2P

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Question

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St. McStanky Beer Co. Income Statement For the Year Ending on December 31 (Millions of dollars)
Year 2 Year 1
5,080
4,000
1,365
1,268
254
160
Net Sales
Operating costs except depreciation and amortization
Depreciation and amortization
Total Operating Costs
Operating Income (or EBIT)
Less: Interest
Earnings before taxes (EBT)
Less: Taxes (25%)
Net Income
Ratio
Operating margin
Profit margin
Return on total assets
Return on common equity
Basic earning power
Value
Year 2
Calculate the profitability ratios of St. McStanky Beer Co. in the following table. Convert all calculations to a percentage rounded to two decimal
places.
45.98%
23.02%
Year 1
64.30%
1,619
3,461
346
17.85%
33.56%
3,115
779
2,336
1,428
2,572
334
2,238
560
1,678

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