Question: calculate 2016 operating margin, profit margin, basic earning power, reutrn on asset, return on equity, and return on invested capital. What can you say about

calculate 2016 operating margin, profit margin, basic earning power, reutrn on asset,return on equity, and return on invested capital. What can you saycalculate 2016 operating margin, profit margin, basic earning power, reutrn on asset, return on equity, and return on invested capital. What can you say about these ratios?

2014 2015 2016E Assets Cash $ 9,000 $ 7.282 $ 14,000 Short-term investments 48,600 71,632 20,000 632,160 Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation 351,200 715,200 $ 1,124,000 491,000 1,287,360 $ 1,946,802 1,202,950 878,000 1,716,480 $2,680,112 1,220,000 263,160 383,160 146,200 $ 344,800 Net fixed assets $ 939,790 $ 836,840 $1,468,800 $2,886.592 $3516,952 $ 145,600 $ 324,000 $ 359,800 200,000 720,000 300,000 136,000 284,960 380,000 Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term debt Common stock (100,000 shares) Retained earnings Total equity Total liabilities and equity $ 481,600 $ 1,328,960 $1,039,800 323,432 500,000 1,000,000 460,000 460,000 1,680,936 203,768 97632 296,216 $ 663,768 $ 557,632 $1,977.152 $1,468 800 $2,886 592 $3,516,952 2014 2015 2016E Sales $7,035,600 $3,432,000 2,864,000 18,900 $5,834,400 4.980,000 116,960 Cost of goods sold except depr. Depreciation and amortization Other expenses Total operating costs 340,000 $3,222,900 $ 209,100 720,000 55,816,960 5,800,000 120,000 612.960 $6,532,960 $ 502,640 EBIT $ 17,440 Interest expense 62.500 176,000 80,000 EBT $ 146,600 ($ 158,560) $ 422,640 Taxes (40%) 58,640 (63,424) 169,056 Net income $ 87,960 ($ 95,136) $ 253,584 Other Data s 8.50 $ 6.00 $ 12.17 Stock price Shares outstanding EPS 100,000 100,000 250,000 $ 0.880 -S 0.951 $ 1.014 DPS $ 0.220 0.110 0.220 Tax rate 40% 40% 40% Book value per share $ 6.638 $ 5.576 5 7909 Lease payments $ 40,000 $ 40,000 $ 40,000

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