A company has the following information for the year ended December 31, 2022: Revenue: $500,000
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Question:
A company has the following information for the year ended December 31, 2022:
• Revenue: $500,000
• Cost of goods sold: $250,000
• Selling and administrative expenses: $100,000
• Interest expense: $10,000
• Income tax rate: 30%
Using this information, answer the following questions:
1. What is the gross profit margin for the company?
2. What is the operating profit margin for the company?
3. What is the net profit margin for the company?
4. Calculate the company's earnings per share if there are 50,000 shares outstanding.
5. If the company wants to increase its net income by 10%, what is the required increase in revenue?
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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