Balance Sheet (Millions of $)       Assets   2018 Cash and securities   $3,000 Accounts receivable   15,000 Inventories   18,000 Total current assets   $36,000 Net plant and equipment   $24,000 Total assets   $60,000 Liabilities and Equity     Accounts payable   $18,630 Accruals   8,370 Notes payable   6,000 Total current liabilities   $33,000       Long-term bonds   $9,000 Total liabilities   $42,000 Common stock   $5,040 Retained earnings   12,960 Total common equity   $18,000 Total liabilities and equity       $60,000           Income Statement (Millions of $)   2018 Net sales   $84,000 Operating costs except depreciation 78,120 Depreciation   1,680 Earnings before interest and taxes (EBIT) $4,200 Less interest   900 Earnings before taxes (EBT)      $3,300   Taxes   1,320 Net income   $1,980       Other data:     Shares outstanding (millions)   500.00   Common dividends (millions of $)   $693.00   Int rate on notes payable & L-T bonds 6% Federal plus state income tax rate 40% Year-end stock price   $47.52     whats is the operating margin =

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Balance Sheet (Millions of $)

 

 

 

Assets

 

2018

Cash and securities

 

$3,000

Accounts receivable

 

15,000

Inventories

 

18,000

Total current assets

 

$36,000

Net plant and equipment

 

$24,000

Total assets

 

$60,000

Liabilities and Equity

 

 

Accounts payable

 

$18,630

Accruals

 

8,370

Notes payable

 

6,000

Total current liabilities

 

$33,000

 

 

 

Long-term bonds

 

$9,000

Total liabilities

 

$42,000

Common stock

 

$5,040

Retained earnings

 

12,960

Total common equity

 

$18,000

Total liabilities and equity

 

    $60,000

 

 

 

 

 

Income Statement (Millions of $)

 

2018

Net sales

 

$84,000

Operating costs except depreciation

78,120

Depreciation

 

1,680

Earnings before interest and taxes (EBIT)

$4,200

Less interest

 

900

Earnings before taxes (EBT)

 

   $3,300

 

Taxes

 

1,320

Net income

 

$1,980

 

 

 

Other data:

 

 

Shares outstanding (millions)

 

500.00

 

Common dividends (millions of $)

 

$693.00

 

Int rate on notes payable & L-T bonds

6%

Federal plus state income tax rate

40%

Year-end stock price

 

$47.52

 

 

whats is the operating margin = 

 

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