Answered: Roberts Corp's sales last year were…

Roberts Corp's sales last year were $300,000, and its net income after taxes was $25,000. What was its profit margin on sales?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

See similar textbooks

Related questions

Q: Ozark Industries reported net income of $75 million in 2002. The company’s corporate tax rate was 40…

A: The sales level of a company directly affect the company's net income. In order to increase the net…

Q: Ever Manufacturers had sales of $900,000 in 2006 and their cost of goods sold represented 65 percent…

A: Given, Sales =$900,000 COGS =65% of sales = $900,000*65% = $585,000 Selling and Administrative…

Q: Last year electric autos had sales of $190 million and assets at the start of the year of $330…

A: The computation of operating profit margin will be: Operating profit margin = Amount of return on…

Q: AEI Incorporated has $5billion in assets, and its tax rate is 40%. Its basic earning power (BEP)…

A: Assets = $ 5 billion Tax rate (T) = 40% BEP ratio = 11% ROA = 10%

Q: Find the operating cash flow for the year for Robinson and Sons if it had sales revenue of…

A: The formula to compute operating cash flow as follows:

Q: Suppose a firm has the following information: Sales = $10million; costs of goods sold (excluding…

A: Computation:

Q: Your pro forma income statement shows sales of $982,000, cost of goods sold as $482,000,…

A: Earnings before interest and taxes: Earnings before interest, depreciation and taxes are the…

Q: Sheryl’s Shipping had sales last year of $13,000. The cost of goods sold was $7,100, general and…

A: Cash flows from operating activities: Cash flows from operating activities is a section of cash flow…

Q: Bryon Inc recently reported $6million of net income. Its EBIT was $13.2 million, and its tax rate…

A: The mathematical equation of the concept used is:

Q: Jannah Company has sales of P1,000,000, cost of goods sold of P700,000, depreciation expenses of…

A: Operating cash flow means net income of the business after excluding the effect of non cash expenses…

Q: Last year, Webster Farms had annual revenue of $87,200, depreciation of $11,600, cost of goods sold…

A: Operating cash flow is cash flow from operating activities. Non cash expenses will not be deducted…

Q: Lemon Auto Wholesalers had sales of $1,400,000 last year, and the cost of goods sold represented 77…

A: Answer: Calculation of the earning after tax: Earning after tax is the net income a company earns…

Q: 6. Sheryl's Shipping had sales last year of $13,000. The cost of goods sold was $7,100, general and…

A: Earnings before interest and taxes are the earnings that company has earned after receiving the…

Q: Rappaport Corp.'s sales last year were $375,000, and its net income after taxes was $23,000. What…

A: Profit margin on sales is ratio of net profit on sales that is as follows: As per formula Profit…

Q: From last year to this year, Berry Barn reported that itsNet Sales increased from $300,000 to…

A: Gross profit rate = ( Gross profit / sales ) x 100

Q: Vhea Corp has an operating profit of P1,200 produced from P9,800 in sales. If Vhea has no interest…

A: Net profit margin:- Net profit margin show the total net income that a company would earned as a…

Q: Ruby Corp's sales last year were $435,500, its operating costs were $350,000, and its interest…

A: TIE number is earnings before interest and taxes (EBIT) divided by the total interest payable

Q: If a company had $15,000 in net income for the year, and its sales were $300,000 for the same year,…

A: Profit margin ratio: The profit margin ratio measures the net income generated for every dollar of…

Q: Reynolds Corp's total assets at the end of last year were $300,000 and its net income after taxes…

A: The return on total assets (ROA) compares a company's total assets with the amount of money it…

Q: he Brenmar Sales Company had a gross profit margin (gross profits÷sales) of 34 percent and sales…

A: GIVEN, gross profit margin =34% sales = $8.3 million credit sale = 79% of sales cash sales = (100…

Q: Andre's Bakery has sales of $687,000 with costs of $492,000. Interest expense is $26,000 and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Last year Rattner Robotics had $5 million in operating income (EBIT). Its depreciation expense was…

A: a. Net income=(EBIT-Interest)×(1-tax rate)=$5,000,000-$1,000,000×1-0.40=$2,400,000

Q: Golden Cumulus Corp., a commodities trading company, reported interest expense of $19 million and…

A: Interest Expense = $ 19 million Less- Increase in interest payable = $ 3 million Interest Paid = $…

Q: Rappaport Corp.s sales last year were $320,000, and its net income after taxes was $23,000. What was…

A: Profit Margin on Sales = Net Income after taxes / Sales

Q: Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000;…

A: Income before tax means net income of the business after considering all operating and non operating…

Q: LMM Company’s total assets at the end of last year were P405,000 and its earnings before interest…

A: Total assets = P405,000 EBIT = P52,500

Q: For the past year, Momsen, Ltd., had sales of $46,577, interest expense of $3,932, cost of goods…

A: “Statement of Profit & Loss” is a financial tool which shows profitability of business. It shows…

Q: Lions Corp's sales last year were $27,000, and its total assets were $16,000. What was its total…

A: Total Asset Turnover Ratio = Total Sales/ Average Assets

Q: Last year, Bad Tattoo Company had additions to retained earnings of $4,270 on sales of $94,090. The…

A: Depreciation is the reduction in the value of an asset over a useful life of the asset. It is an…

Q: Ramala Corp's sales last year were $48,000, and its total assets were $25,500. What was its total…

A: A ratio that provides information regarding the efficient use of a company’s total asset is term as…

Q: . If net sales amounted to P200,000, net income before tax is P80,000 and the income tax rate is…

A: Profit margin ratio is the profitability ratio which shows ratio of net income with net sales in the…

Q: For the past year, Momsen Limited had sales of $45,017, interest expense of $3,308, cost of goods…

A: Net income is overall profit received by the company after providing the operating expenses and the…

Q: Vhea Corp has an operating profit of P1,200 produced from P9,800 in sales. If Vhea has no interest…

A: Operating profit- This profit is obtained by the entity during its operating activities only. This…

Q: Last year, Quayle Energy had sales of $200 million and its inventory turnover ratio was 5.0. The…

A: Formula, Quick Ratio = [ (Current assets - Inventory )/ current liabilities ]

Q: At the end of the year, Wrinkle Free Laundry (WFL) had $150,000 in total assets. (a)If WFL’s total…

A: Given: Total assets = $150,000 Total asset turnover ratio = 2 Return on asset = 6%

Q: Sheaves, Inc., has sales of $54,000, costs of $24,600, depreciation expense of $2,650, and interest…

A: Operating Cash Flow = EBIT + Depreciation - Taxes EBIT = Sales - Cost - Depreciation - Interest

Q: Round your answer to the nearest dollar. Use a minus sign to enter a negative value, if any.

A: Economic Value Added is also called economic profit. It measures company financial performance,…

Q: During 2010. Raines Umbrella Corp. had sales of $740,000. Cost of goods sold, administrative and…

A: Net income is the amount of money earned by an entity after deducting all the expense either…

Q: Rose inc. had sales of $7 million during the past year. The cost of goods sold amounted to $4…

A: Cost of goods sold exhibits direct cost incurred by company for producing goods and services.

Q: In the recent year Hill Corporation had net income of $140,000, interest expense of $40,000, and tax…

A: Net Income before interest and taxes = Net income + Interest expense + Tax expense Net Income before…

Q: HighTech Wireless just published its current income statement, which shows net income equal to…

A: Hightech has no debt it means no interest expense. Income before tax = Net income/(1 - tax rate)…

Q: A firm’s annual revenues are $850,000. Its expenses for the year are $615,000, and it claims…

A: Tax:- It is the amount which one pays to the government of the country as per prescribed rates or…

Q: Hailey, Inc., has sales of $19,580, costs of $9,450, depreciation expense of $2,120, and interest…

A: Operating cash flow is nothing but the cash generated from day-to-day business operations. It is…

Q: Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of…

A: Operating cash flow = profit after tax /net income + depreciation - taxes

Q: RJS generated $78,000 net income this year. The firm's financial statements also show that its…

A: Net income = $ 78,000 Interest expenses = $ 40,000 Tax rate = 35% NOPAT = Net income+[Interest…

Q: Golden Cumulus Corp., a commodities trading company, reported interest expense of $19 million and…

A: Interest Expense = 19,000,000 Taxes = 6,000,000 Increase in interest payable = 3,000,000 Decrease in…

Q: Rappaport Corp.&#39;s sales last year were $320,000, and its net income after taxes was $23,000.…

A: PROFIT MARGIN=NET INCOME AFTER TAXSALES

Question

Roberts Corp's sales last year were $300,000, and its net income after taxes was $25,000. What was its profit margin on sales?

Expert Solution

Step 1

A ratio that helps to evaluate how much portions of the sales revenue of a company turns in the profit is term as the profit margin.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?
Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current year. Carter has $12 million in total net operating assets in the current year and had $10 million in the previous year. What is its free cash flow?
Rappaport Corp.'s sales last year were $320,000, and its net income after taxes was $23,000. What was its profit margin on sales? A 6.49% B 6.83% C 7.19% D 7.55%
Last year, Genten Company had sales of $7465 million. If Genten’s net profit margin was 0.41 and its return on assets was 0.37, what was Genten’s total assets?
Reynolds Corp's total assets at the end of last year were $300,000 and its net income after taxes was $25,000. What was its return on total assets?
Marine Outlets, Inc. had $ 14 million in sales last year, COGS of $ 8 million, depreciation expense of $ 2 million, $ 1 million in interest payments on long-term debt. If the firm's “tax rate” is 35%, how much is the Firm's Net Income?
Lemon Auto Wholesalers had sales of $1,400,000 last year, and the cost of goods sold represented 77 percent of sales. Selling and administrative expenses were 13 percent of sales. Depreciation expense was $10,000 and interest expense for the year was $9,000. The firm’s tax rate is 30 percent.a. Compute earnings after taxes.
Last year electric autos had sales of $190 million and assets at the start of the year of $330 million. If its return on the start of year assets was 15%, what was its operating profit margin?
Rappaport Corp.'s sales last year were $375,000, and its net income after taxes was $23,000. What was its profit margin on sales? Select the correct answer. a. 6.19 % b. 6.21 % c. 6.17 % d. 6.13 % e. 6.15 %
Suppose Ningbo Steel had sales revenue of $11,000 sales revenue, and a cost of goods sold at $5000, operating expenses of $1000, a tax rate of 20%, and 1000 shates of common stock outstanding. Based on this information, what was the net profit after tax?
Arshadi Corp.'s sales last year were $52,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO)?