Please show working MINDTAPQ Search this couExhibit 4.1The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will berolled over.Balance Sheet (Millions of $)Assets2018Cash and securities$3,000Accounts receivable15,000Inventories18,000Total current assets$36,000Net plant and equipment$24,000Total assets$60,000Liabilities and EquityAccounts payable$18,630Accruals8,370Notes payable6,000Total current liabilities$33,000Long-term bonds$9,000Total liabilities$42,000Common stock$5,040Retained earnings12,960Total common equity$18,000Total liabilities and equity$60,000Income Statement (Millions of $)2018Net sales$84,000Operating costs except depreciation78,120Depreciation1,680Earnings before interest and taxes (EBIT)$4,200Less interest006Earnings before taxes (EBT)$3,300Taxes1,320Net income$1,980 Totai ilabilities ana equity$00,000Income Statement (Millions of $)2018Net sales$84,000Operating costs except depreciation78,120Depreciation1,680Earnings before interest and taxes (EBIT)$4,200Less interest900Earnings before taxes (EBT)$3,300Taxes1,320Net income$1,980Other data:Shares outstanding (millions)500.00Common dividends (millions of $)$693.00Int rate on notes payable & L-T bonds6%Federal plus state income tax rate40%Year-end stock price$47,52Refer to Exhibit 4.1. What is the firm's profit margin? Do not round your intermediate calculations.O a. 2,36%O b. 2.48%O c. 1.84%O d. 2.52%O e. 1.82%

Net income = $1,980 million Net sales = $84,000 million

Answered: Refer to Exhibit 4.1. What is the…

Refer to Exhibit 4.1. What is the firm's profit margin? Do not round your intermediate caleculations. а. 2.36% b. 2.48% c. 1.84% d. 2.52% e. 1.82%

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter2: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 15SP

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