CFIN
6th Edition
ISBN: 9780357144039
Author: BESLEY
Publisher: CENGAGE L
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Chapter 2, Problem 8PROB
Summary Introduction
To determine: Sales Revenues, Net Income and Profit Margin
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- X-1 Corp's total assets at the end of last year were $440,000 and its EBIT was $55,000. What was its basic earning power (BEP) ratio?arrow_forwardArshadi Corp.'s sales last year were $52,000, and its total assets were $22,000. What was its total assets turnover ratio (TATO)?arrow_forwardThe balance sheet of ATLF, Inc. reports total assets of $950,000 and $1,050,000 at the beginning and end of the year, respectively. Net income and sales for the year are $100,000 and $800,000, respectively. What is ATLF's profit margin? Select one: a. 8% b. 15% c. 10% d. 80% e. 12.5%arrow_forward
- Chambliss Corp.'s total assets at the end of last year were $265,000 and its EBIT was 62,500. What was its basic earning power (BEP)? Select the correct answer. a. 22.88% b. 24.28% c. 23.58% d. 24.98% e. 22.18%arrow_forwardAccordingly, 15% of rent, depreciation, and utility expenses pertain to the sales office while the rest pertains to the corporate office. Questions: How much is the net sales for the year? How much is the cost of sales for the year? How much is the gross profit for the year? How much is the net income for the year? Prepare a statement of comprehensive income. Prepare a financial statement.arrow_forwardRappaport 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 %arrow_forward
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