Cumulative Problem: XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000,
Question:
Cumulative Problem: XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. Construct their income statement and answer the below:
Gross profit is ___.
a. | 2,400,000 | |
b. | 1,920,000 | |
c. | 730,000 | |
d. | 2,880,000 |
Question 2
What best describes operating profit margin?
a. | earnings before interest and tax in relation to sales | |
b. | the impact of depreciation on taxes paid | |
c. | cost of goods sold in relation to sales | |
d. | net profit margin in relation to sales |
Question 3
Cumulative Problem: XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. Construct their income statement and answer the below.
EBT is $ ___.
a. | 760,000 | |
b. | 730,000 | |
c. | 400,000 | |
d. | 750,000 |
Question 4
Cumulative Problem: XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. Construct their income statement and answer the below.
Net profit margin is?
a. | 12% | |
b. | 9.4% | |
c. | 9.5% | |
d. | 9.1% |
Question 5
Cumulative Problem: XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. Construct their income statement and answer the below.
If dividend payout is 40%, retained earnings are ____.
a. | 270,000 | |
b. | 273,600 | |
c. | 144,000 | |
d. | 262,800 |
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding