Question: Use the following information for this question (the given information is the same as in the previous question); Little Gorilla, Inc Year 2 Income Statement
Use the following information for this question (the given information is the same as in the previous question); Little Gorilla, Inc Year 2 Income Statement (5 in million) Sales 59.625 Less Cost of goods sold 3.225 Less: Depreciation 1.890 Earnings Before interest and takes 2,310 Less Interest paid 850 Taxable income 1,660 Less: Taxes 581 Net income $1.079 Dividends paid 400 Addition to retained carnings 5679 Yoland Y2Balance Sheet (Sin million) Ya Year 2 Yel Year Cash $1,455 5260 Accounts payable $1,150 $2,863 Accounts rec. 2450 3.975 Notes payable 2009 2628 Inventory 1105 Total $3,750 $4.191 Total $5.320 55.130 Long-term dhe 7.000 7.600 Net find assets 19.300 21.720 Common stock 5.500 56700 Retained earnings 329 9049 Total liabilis Total 524620 526 540 and Equity24.620 526,840 Account Accounts receivables What is the profit margin for Year 2? OA) 0.04 B) 0.07 C) 0.11 D) 0.26
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