Financial Accounting C.Mulford: Financial Statement Analysis: 7 Exercise in Understanding Changes in Operating Profit Pharmaceuticals, Inc. |For the quarter ended December 31, 2017, Pharmaceuticals reported an improvement in operating profit to $1,731 from an operating loss of $403 during the same quarter in 2016. Use the following data to make requested calculations: (amounts in thousands) For 3 months ended December 31, 2017 2016 $19,550 14.989 4,561 Sales, net Cost of goods sold Gross profit Research and development Selling, general and administrative Operating profit (loss) $14,937 12,188 2,749 205 218 2.625 $1.731 2.934 $(403) a) Calculate gross margin and operating margin. b) Calculate the R&D percent and SGA percent. What has the company done to improve its performance?
Financial Accounting C.Mulford: Financial Statement Analysis: 7 Exercise in Understanding Changes in Operating Profit Pharmaceuticals, Inc. |For the quarter ended December 31, 2017, Pharmaceuticals reported an improvement in operating profit to $1,731 from an operating loss of $403 during the same quarter in 2016. Use the following data to make requested calculations: (amounts in thousands) For 3 months ended December 31, 2017 2016 $19,550 14.989 4,561 Sales, net Cost of goods sold Gross profit Research and development Selling, general and administrative Operating profit (loss) $14,937 12,188 2,749 205 218 2.625 $1.731 2.934 $(403) a) Calculate gross margin and operating margin. b) Calculate the R&D percent and SGA percent. What has the company done to improve its performance?
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Transcribed Image Text:Financial Accounting
C.Mulford: Financial Statement Analysis: 7
Exercise in Understanding Changes in Operating Profit
Pharmaceuticals, Inc.
For the quarter ended December 31, 2017, Pharmaceuticals
reported an improvement in operating profit to S1,731 from an
operating loss of $403 during the same quarter in 2016.
Use the following data to make requested calculations:
(amounts in thousands)
For 3 months ended December 31,
2017
2016
Sales, net
Cost of goods sold
Gross profit
Research and development
Selling, general and administrative
Operating profit (loss)
$19,550
14.989
4,561
205
$14,937
12.188
2,749
218
2.625
$1.731
2.934
$(403)
a)
Calculate gross margin and operating margin.
b)
Calculate the R&D percent and SGA percent.
c)
What has the company done to improve its performance?
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