Local Co. has sales of $10.2 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $530,000 and its research and development is $1.4 million. It has annual depreciation charges of $1.2 million and a taxrate of 25%.a. What is Local's gross margin?b. What is Local's operating margin?c. What is Local's net profit margin?

Gross profit margin (GPM) refers to the portion of the company’s goods and services that is…

Answered: Local Co. has sales of $10.2 million…

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

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consider a company with sales of $18,000.0 million, cost of goods sold of 42% of sales, other expenses including salaries ( we usually call this SG&A for selling, general and administrative) of 1750.0million, depreciation of 2250.0 million, and interest expense of 2300 million. tax rate =21%. a. generate an income statement and show net income b. what is the company's operating cash flow? c. if there are 775.2 million shares outstanding, what is the EPS? d. if the company has a payout ratio of 20%, what is the dividends per share?
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