Linden Corp. has a 10% market share in its industry. Below are income statements ($millions) for Linden
Question:
a. Develop common sized income statements for Linden and the industry as a whole.
b. What areas should management focus on to improve performance, and what kind of issues should be examined or looked for in eacharea?
Transcribed Image Text:
Linden Industry Sales Cost of goods sold Gross margin Expenses: $6,000 $64,000 33,650 2,800 $30,350 3.200 S 430 3,850 2,650 4,560 $1,305 11,060 S1,495 19,290 2304.500 S1,265 $14,790 Sales and marketing Engineering 225 650 Finance and administration Total expenses EBIT Interest expense EBT Tax Net income 500 5.620 S 765 9,170
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a Linden Industry Sales 6000 1000 64000 1000 Cost of Goods Sold 3200 533 33650 526 Gross Margin 2800 477 30350 474 Expenses Sales and Marketing 430 72 ...View the full answer
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