The following data were extracted from the 2013 financial statements of Penske Automotive Group, Inc. This company
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The following data were extracted from the 2013 financial statements of Penske Automotive Group, Inc. This company operates automobile dealerships, mostly in the United States and the United Kingdom. The company had 327 dealerships as of the end of 2013. Dollar amounts are in millions.
Required
a. Compute Penske€™s gross margin percentage for 2013 and 2012.
b. Compute Penske€™s average days to sell inventory for 2013 and 2012.
c. How much higher or lower would Penske€™s earnings before taxes have been in 2013 if it€™s gross margin percentage had been the same as it was in 2012? Show all supporting computations.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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