hi, can you helo me with Calculatingthe following ratios for Year 2: (a) profit margin ratio (b) gross margin ratio ( c) times interest earned. Silverlight Company Income Statements For Years Ended December 31, Year 2 Year 1 Net sales $720,000 $ 607,500 Cost of goods sold 450,000 382,700 Gross profit $270,000 $224,800 Operating expense 168, 500 134,900 Income from operations $ 101,500 $ 89,900 Interest expense 22,300 11,200 Income before taxes $ 79,200 $ 78,700 Income taxes 28,000 27,000 Net income $ 51,200 $ 51,700
hi, can you helo me with Calculatingthe following ratios for Year 2: (a) profit margin ratio (b) gross margin ratio ( c) times interest earned. Silverlight Company Income Statements For Years Ended December 31, Year 2 Year 1 Net sales $720,000 $ 607,500 Cost of goods sold 450,000 382,700 Gross profit $270,000 $224,800 Operating expense 168, 500 134,900 Income from operations $ 101,500 $ 89,900 Interest expense 22,300 11,200 Income before taxes $ 79,200 $ 78,700 Income taxes 28,000 27,000 Net income $ 51,200 $ 51,700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:hi, can you help me with Calculatingthe following ratios
for Year 2: (a) profit margin ratio (b) gross margin ratio (
c) times interest earned. Silverlight Company Income
Statements For Years Ended December 31, Year 2 Year
1 Net sales $ 720,000 $ 607,500 Cost of goods sold
450,000 382, 700 Gross profit $270,000 $224,800
Operating expense 168, 500 134, 900 Income from
operations $ 101,500 $ 89,900 Interest expense
22, 300 11,200 Income before taxes $ 79,200 $ 78,700
Income taxes 28,000 27,000 Net income $ 51,200 $
51,700
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