Question: Can you help me with the problem? I'm not sure if calculating or solving the problems, right. Green Caterpillar Garden Supplies, Inc. Income Statements Years
Can you help me with the problem? I'm not sure if calculating or solving the problems, right.
Green Caterpillar Garden Supplies, Inc. Income Statements Years Ending December 31 Year Year 2 Year 1 Net Sales $4,445,000 $3,500,000 Operating costs less depreciation and amortization 1,365,000 1,267,500 Depreciation and amortization 222,250 140,000 Total Operating Costs $1,587,250 $1,407,500 Operating Income $2,857,750 $2,092,500 Interest 285,775 272,025 Earnings before taxes $2,571,975 $1,820,475 Taxes (40%) 1,028,790 728,190 Net Income $1,543,185 $1,092,285 Given the income statements, calculate the protability ratios of Green Caterpillar Garden Supplies, Inc. Profitability Ratio Value Year 2 Year 1 Operating profit margin 64.29% V 59.79% Net profit margin 34.72% 42.13% V Return on total assets 11.73% V 13.28% Return on common equity 24.97% Which of the following statements are true about profitability ratios? Check all that apply. A higher operating prot margin than the industry average indicates either lower operating costs, higher product pricing, or both. If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. C] An increase in the return on assets ratio implies an increase in the assets a firm owns. C] If a company issues new common shares but its net income does not increase, return on common equity will increase. \fGiven the income statements, caicuiate the protability ratios of Green Caterpiiiar Garden Suppiies, Inc. Profitability Ratio Value Year 2 Year 1 Operating profit margin V 59.79% Net profit margin 34.72% V Return on total assets V 44.09% Return on common equity V 42.13% Which of the following statements are true about ratios? Check aii that appiy. 24.57% C] A higher operating prot margin than t 31.21% average indicates either lower operating co: Given the income statements, calculate the protability ratios of Green Caterpillar Garden Supplies, Inc. Profitability Ratio Value Year 2 Year 1 Operating profit margin V 59.79% Net profit margin 34.72% V Return on total assets V 13.28% 24.97% Return on common equity 13.49% 11.73% - about profitability ratios? Check all that apply. Which of the following stateme 18.76% C] A higher operating pr than the industry average indicates either lower operating costs, higher product pricing, or 8.30% C] If a company's opera increases but its profit margin decreases, it could mean that the company paid more in int Given the income statements, calculate the protability ratios of Green Caterpillar Garden Supplies, Inc. Profitability Ratio Value Year 2 Year 1 Operating profit margin V 59.79% Net profit margin 34.72% V Return on total assets V 13.28% Return on common equity V 24.97% 35.27% Which of the following stateme - about profitability ratios? Check all that apply. 31.39% [:1 A higher operating pr than the industry average indicates either lower operating cosi 26.45% C] If a company's opera increases but its profit margin decreases, it could mean that tl 43.38% [:1 An increase in the re -ts ratio implies an increase in the assets a firm owns. Which of the following statements are true about profitability ratios? Check all that apply. C] A higher operating prot margin than the industry average indicates either lower operating costs, higher product pricing, or both. [3 If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. [3 An increase in the return on assets ratio implies an increase in the assets a firm owns. C] If a company issues new common shares but its net income does not increase, return on common equity will increase
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