For 2019 Carman Ltd reported profit £96 000; net sales £800 000; and average assets £1 600 000. What was the 2019 profit margin? 6% 12% 40 % 200%
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- Income Statement for the years ending 31 August: 2020 2019 £ £Revenue 950,000 975,000Cost of sales 455,000 460,000Gross profit 495,000 515,000Total expenses 320,000 310,000Net profit 175,000 205,000 Statement of financial position as at 31 August:- 2020 2019£ £Non-current assets 70,000 65,000Current assetsCash at bank…Income Statement for the years ending 31 August: 2020 2019 £ £Revenue 950,000 975,000Cost of sales 455,000 460,000Gross profit 495,000 515,000Total expenses 320,000 310,000Net profit 175,000 205,000 Statement of financial position as at 31 August: 2020 2019£ £Non-current assets 70,000 65,000Current assetsCash at bank…Income Statement (Extract) for the year ended 31 March 2018 2019 £ £ Sales 3,000,000 5,400,000 Less: Cost of Sales 2,400,000 4,320,000 Gross Profit 600,000 1,080,000 Less: Expenses 360,000 500,000 Operating Profit 240,000 580,000 Statement of Financial Position (Extract) as at 31 March 2018 2019 £ £ Non- Current Assets 364,000 512,000 Current Assets Inventory 480,000 1,440,000 Trade Receivables 396,000 812,000 Total Assets £1,240,000 £2,764,000 Capital & Reserves Ordinary Share Capital 140,000 240,000 Reserves 260,000 560,000 Non-Current Liabilities 440,000 500,000 Trade Payables 320,000 724,000 Bank Overdraft 80,000 740,000 Total Equity and Liabilities £1,240,000 £2,764,000 Calculate : Trade Receivable Days Trade Payable Days Non-current assets turnover
- c. Calculate the profitability ratio which includes gross profit margin, operating profit margin, net profit margin, and NOPAT margin2019: Profit Margin – Profit $1435 / Net Sales $38,464 = 0.037:1 OR 3.7% Working Capital – Current Assets $3406 - Current Liabilities $4291 = -885 Current Ratio – Current Assets $3406 / Current Liabilities $4291 = 0.79:1 OR $0.79 Current Cash Debt Coverage – Net Cash Provided by Operation Activities $2275 / Average Current Liabilities $8781.50 = 0.26:1 OR 0.26 Average Current Liabilities Calculation: 4291 + 8981 / 2 = 8781.50 Debt to Total Assets Ratio – Total Liabilities 4291 + 2129 = 6420 / Total Assets 3406 + 6371 = 9777 = 0.66:1 OR 0.66 Cash Debt Coverage – Net Cash Provided by Operation Activities $2275 / Average Total Liabilities 11,067.25 = 0.21:1 OR 0.21 Average Total Liabilities Calculation: 6420 + 9295 / 2 = 11,067.25 Return on Assets – Profit 1435 / Average Total Assets 11,160.50 = 0.128:1 OR 12.8% Average Total Assets Calculation: 9777 + 12544 / 2 = 11,160.50 2020: Profit Margin – Profit $978 / Net Sales $37,784 = 0.025:1 OR 2.5% Working Capital – Current Assets $3779 -…The trend analysis report of Doremon Ltd is given below: (in millions) 2020 2019 2018 2017 2016 Profit $670 $602 $460 $407 $402 Trend Analysis percentages 167%150%114%101%100% Which of the following is a correct conclusion from the above analysis? Select one: O a. Profit for the year 2018 has decreased by 14% over that for the year 2016. O b. Profit for the year 2018 has decreased by 114% over that for the year 2016. O c. Profit for the year 2018 has increased by 14% over that for the year 2016. O d. Profit for the year 2018 has increased by 114% over that for the year 2016.
- Zack Corp. had the following information for 2019: Sales $500,000Operating income 50,000Operating assets 200,000Imputed interest rate 10% What amount of residual income did Zack have?• The following is available for Golden Corporation for 2019: Sales 2,000,000 Average invested capital (assets) 500,000 Net income 300,000 I Cost of capital 18% What is the residual income for Golden Corp.? 1. P - 0 - 2. P 200,000 3. P 210,000 4. P 246,000 0 1 O 2 O 3 O 4• The following is available for Golden Corporation for 2019: Sales 2,000,000 Average invested capital (assets) 500,000 Net income 300,000 Cost of capital 18% What is the return on investment for Golden Corp.? 1. 15% 2. 18% 3.33% 4. 60% O 1 O 2 3. 4
- Sales for Company Y are $100,000 in 2019 and the net profit margin is 9.0%. The Return on Equity is 20%. What is the dollar value of Equity. $ 18,000 $ 45,000 $ 90,000 $ 444,444What does this say about the company's profitability?II. Direction: The following comparative financial statements are provided by Zeus Company. Using Horizontal and Vertical approach, calculate the missing and write your answer on the blank. Show supporting solutions in a separate sheet of paper. Answer the questions at the bottom of this activity.