6. Refer to the income statement above. Luther's net profit margin for the year ending December 31, 2005 is closest to: Luther CorporationConsolidated Income StatementYear ended December 31 (in Smillions)20062005Total sales610.1558.8(500.2)109.9(366)Cost of salesGross profitSelling, general, andadministrative expensesResearch and developmentDepreciation and amortizationOperating incomeOther income192.8(40.5)(24.6)(3.6)41.2(36.5)(20.5)(3.3)132.5----Eamings before interest and taxes (EBIT)Interest income (expense)41.2132.5(25.1)16.1(14.4)118.1Pretax incomeТахes(5.5)(41.335)76.765Net income10.6Price per shareSharing outstanding (millions)Stock options outstanding (millions)$16$1510.28.00.30.2.2Stockholders' EquityTotal Liabilities and Stockholders' Equity126.663.6533.1386.7Refer to the income statement above. Luther's net profit margin for the year ending December 31, 2005 is dlosest to:O A. 13.74%O B. 6.87%OC. 10.99%O D. 16.49%

Answer - Net Profit margin = net income / sales

Year ended December 31 (in Smillions) 2006 2005 Total sales 610.1 558.8 (366) 192.8 Cost of sales (500 2) 109.9 Gross profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating income Other income Eamings before interest and taxes (EBIT) Interest income (expense) (40.5) (24.6) (3.6) (36.5) (20.5) (3.3) 41.2 132.5 -- -- 41.2 132.5 (25.1) (14.4) 118.1 Pretax income 16.1 Taxes (5.5) 10.6 (41.335) 76.765 Net income Price per share Sharing outstanding (millions) Stock options outstanding (millions) $16 $15 10.2 0.3 8.0 0.2 Stockholders' Equity Total Liabilities and Stockholders' Equity 126.6 63.6 386.7 533.1 Refer to the income statement above. Luther's net profit margin for the year ending December 31, 2005 is closest to: OA. 1374% O B. 6.87% OC. 10.99 % OD. 16 49%

Year ended December 31 (in Smillions) 2006 2005 Total sales 610.1 558.8 (366) 192.8 Cost of sales (500 2) 109.9 Gross profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating income Other income Eamings before interest and taxes (EBIT) Interest income (expense) (40.5) (24.6) (3.6) (36.5) (20.5) (3.3) 41.2 132.5 -- -- 41.2 132.5 (25.1) (14.4) 118.1 Pretax income 16.1 Taxes (5.5) 10.6 (41.335) 76.765 Net income Price per share Sharing outstanding (millions) Stock options outstanding (millions) $16 $15 10.2 0.3 8.0 0.2 Stockholders' Equity Total Liabilities and Stockholders' Equity 126.6 63.6 386.7 533.1 Refer to the income statement above. Luther's net profit margin for the year ending December 31, 2005 is closest to: OA. 1374% O B. 6.87% OC. 10.99 % OD. 16 49%

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

See similar textbooks

Similar questions

Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Return on total assets
Profitability metrics The following selected data were taken from the financial statements of The O'Malley Group Inc. for December 31, 20Y5. 20Y4. and 20Y3: No dividends on common stock were declared between 20Y3 and 20Y5. a.Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity Tor the years 20Y4 and 20Y5. Round to one decimal place. b. What conclusions can be drawn from these data as to the company's profitability?
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Ratio of fixed assets to long-term liabilities
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Debt ratio
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instuctins Times preferred earned
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Working
Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
Prepare the Pro-Forma Statement of Financial Position for the year ending 31 December 2023 INFORMATIONSibiya ProjectsStatement of Comprehensive Income for the year ended 31 December 2022 RSales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable, selling and administrative costs (1 500 000)Fixed selling and administrative costs (500 000)Net profit 2 250 000 Statement of Financial Position for the year ended 31 December 2022ASSETS RNon-current assets 800 000Property, plant and equipment 800 000 Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000TOTAL ASSETS 4 200 000 EQUITY AND LIABILITIESEquity 3 760 000 Current liabilities 440 000Accounts payable 440 000TOTAL ASSETS AND LIABILITIES 4 200 000 Additional informationA. The sales budget for 2023 is as follows:First Quarter Second Quarter Third Quarter Fourth QuarterR2 625 000 R2 750 000 R2 875 000 R2 750 000 B. 90% of sales is collected in the quarter of the sale and 10% in the quarter…
Oreo reported the following for the period:Sales P1,000,000Cost of Sales P300,000Operating expenses P100,000Determine the OSD assuming that Oreo is a corporation
Following is information from Eagle Inc. for Year 7, ($ in thousands). Total revenue $2,887,892 Total revenue growth rate 4% Net operating profit margin (NOPM) 5.7% Net operating profit after tax (NOPAT) $207,262 Net operating asset turnover (NOAT) 4.37 Projected net operating assets (NOA) for Year 8 is: $687,279 thousand $660,845 thousand $637,953 thousand $698,513 thousand None of these are correct.
Use the table for the question(s) below. Consider the following income statement and other information: Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) 2009 2008 Total sales 610.1 578.3 Cost of sales (500.2) (481.9) Gross profit 109.9 96.4 Selling, general, and administrative expenses (40.5) (39.0) Research and development (24.6) (22.8) Depreciation and amortization (3.6) (3.3) Operating income 41.2 31.3 Other income --- --- Earnings before interest and taxes (EBIT) 41.2 31.3 Interest income (expense) (25.1) (15.8) Pre-tax income 16.1 15.5 Taxes (5.5) (5.3) Net income 10.6 10.2 Price per share $16 $15 Shares outstanding (millions) 10.2 8.0 Stock options outstanding (millions) 0.3 0.2 Stockholders' Equity 126.6 63.6 Total Liabilities and Stockholders' Equity…