he Haines Corporation shows the following financial data for 20X1 and 20X2: 20X1 20X2 Sales $ 2,950,000 $ 3,380,000 Cost of goods sold 1,630,000 2,170,000 Gross profit $ 1,320,000 $ 1,210,000 Selling & administrative expense 269,000 265,000 Operating profit $ 1,051,000 $ 945,000 Interest expense 45,400 46,600 Income before taxes $ 1,005,600 $ 898,400 Taxes (35%) 351,960 314,440 Income after taxes $ 653,640 $ 583,960 For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in 20X2. Note: Input your answers as a percent rounded to 2 decimal places.
he Haines Corporation shows the following financial data for 20X1 and 20X2: 20X1 20X2 Sales $ 2,950,000 $ 3,380,000 Cost of goods sold 1,630,000 2,170,000 Gross profit $ 1,320,000 $ 1,210,000 Selling & administrative expense 269,000 265,000 Operating profit $ 1,051,000 $ 945,000 Interest expense 45,400 46,600 Income before taxes $ 1,005,600 $ 898,400 Taxes (35%) 351,960 314,440 Income after taxes $ 653,640 $ 583,960 For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in 20X2. Note: Input your answers as a percent rounded to 2 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
he Haines Corporation shows the following financial data for 20X1 and 20X2:
| 20X1 | 20X2 | |
|---|---|---|
| Sales | $ 2,950,000 | $ 3,380,000 |
| Cost of goods sold | 1,630,000 | 2,170,000 |
| Gross profit | $ 1,320,000 | $ 1,210,000 |
| Selling & administrative expense | 269,000 | 265,000 |
| Operating profit | $ 1,051,000 | $ 945,000 |
| Interest expense | 45,400 | 46,600 |
| Income before taxes | $ 1,005,600 | $ 898,400 |
| Taxes (35%) | 351,960 | 314,440 |
| Income after taxes | $ 653,640 | $ 583,960 |
For each year, compute the following ratios and indicate how the change in each ratio will affect profitability in 20X2.
Note: Input your answers as a percent rounded to 2 decimal places.
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