Is ABC, Inc. profitable? Give me your proof for your explanation by computing the profitability.Is the company's financial performance improvements based on the two-year data presented?Is the company heavily financed by debt or equity? Give me your proof for your explanation. АВС, INC.АВС, INC.Condensed Balance SheetsCondensed Income StatementDecember 31For the Years Ended December 31(In millions)(In millions)Assets2014201520142015Current Assets1,902.01,617.1Net sales8,853.36,954.7Plant Assets2,952.82,526.9Cost of goods sold4,128.53,327.0Other Assets5,513.8742.0Total Assets10,368.64,886.0Gross Profit4,724.03,627.7Liabilities and Steckholderz' EquitySelling & Admin.3,523.62,551.4Current liabilities2,017.62,482.3Nonrecuring charges33.386.5Long-term liabilities7,289.51,506.2Income from operations1,167.9989.8Total libailities9,497.13,988.5Interest Expense351.5137.5Stockholders' equityOther incomeCommon stock195.3205.8(expense), net(12.3)15.4Retained eamings1,013.31,065.7Income before taxes804.1867.7Treasury stock(337.1)(374.0)Total stockholders' equity871.5897.5Income tax expense322.1280.0Total lisbilities and stockholders' equityP 10,368.6P4,886.0Net incomeP 482.0P 587.7

Net profit ratio = Net income * 100/Net sales Particulars 2014 2015 Net income P482 m P587.7 m…

Answered: computing the profitability

Business

Accounting

computing the profitability

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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