($ illions) Revenues $ 100 Cost of Goods Sold 60 Gross Profit 40 Operating Expense 20 Earnings Before Interest & Taxes Interest Expense 20 Earnings Before Taxes 15 Income Tax Expense 10 Net Income $4 5

($ illions) Revenues $ 100 Cost of Goods Sold 60 Gross Profit 40 Operating Expense 20 Earnings Before Interest & Taxes Interest Expense 20 Earnings Before Taxes 15 Income Tax Expense 10 Net Income $4 5

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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Question

what is the profit margin ratio

($ millions)
Revenues
$
100
Cost of Goods Sold
60
Gross Profit
40
Operating Expense
20
Earnings Before Interest & Taxes
20
Interest Expense
5
Earnings Before Taxes
15
Income Tax Expense
10
Net Income
5
%24

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