Riyers Inc. has the following selected information for its years ended June 30: Required: Calculate the gross
Question:
Riyers Inc. has the following selected information for its years ended June 30:
Required:Calculate the gross profit margin and operating margin for each of the three years. Comment on the trend. What additional information would an analyst require to properly understand this trend?
Transcribed Image Text:
Gross sales Gross profit Interest expense Income taxes (at 28%) Net earnings 20X3 $567,800 $359,700 $ 66,000 $ 56,000 $217,000 20X2 $650,700 $422,950 $ 75,000 $ 45,000 $160,600 20X1 $589,200 $389,460 $ 90,000 $ 35,000 $ 127,100
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Discussion The gross profit margin has worsened over the threeyear period from 661 ...View the full answer
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Related Book For
Intermediate Accounting Volume 2
ISBN: 9781260881240
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
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