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Scenario 1 The financial statements and data shown below are to be used for the next three (3) questions. All figures are in millions except the tax rate and the year-end stock price.   BALANCE SHEET         Cash $  140.0   Accounts payable $  800.0   Accts. receivable     880.0   Notes payable     600.0   Inventories   1,320.0   Accruals      400.0   Total current assets $2,340.0   Total current liabilities $1,800.0       Long-term bonds   1,000.0       Total debt $2,800.0       Common stock      200.0       Retained earnings   1,000.0   Net plant & equip.   1,660.0   Total common equity $1,200.0   Total assets $4,000.0   Total liabilities & equity $4,000.0           INCOME STATEMENT         Net sales $6,000.0         Operating costs   5,599.8         Depreciation      100.2         EBIT $   300.0         Less: Interest        96.0         EBT $   204.0         Less: Taxes        81.6         Net income $   122.4       OTHER DATA       Shares outstanding 60.00        Common dividends $42.8        Federal plus state income tax rate 40%     Year-end stock price $30.60                    Use Scenario 1 to answer the question. What is the firm's net profit margin?

Scenario 1 The financial statements and data shown below are to be used for the next three (3) questions. All figures are in millions except the tax rate and the year-end stock price.   BALANCE SHEET         Cash $  140.0   Accounts payable $  800.0   Accts. receivable     880.0   Notes payable     600.0   Inventories   1,320.0   Accruals      400.0   Total current assets $2,340.0   Total current liabilities $1,800.0       Long-term bonds   1,000.0       Total debt $2,800.0       Common stock      200.0       Retained earnings   1,000.0   Net plant & equip.   1,660.0   Total common equity $1,200.0   Total assets $4,000.0   Total liabilities & equity $4,000.0           INCOME STATEMENT         Net sales $6,000.0         Operating costs   5,599.8         Depreciation      100.2         EBIT $   300.0         Less: Interest        96.0         EBT $   204.0         Less: Taxes        81.6         Net income $   122.4       OTHER DATA       Shares outstanding 60.00        Common dividends $42.8        Federal plus state income tax rate 40%     Year-end stock price $30.60                    Use Scenario 1 to answer the question. What is the firm's net profit margin?

Essentials Of Investments
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
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Scenario 1
The financial statements and data shown below are to be used for the next three (3) questions. All figures are in millions except the tax rate and the year-end stock price.
 

BALANCE SHEET      
  Cash $  140.0   Accounts payable $  800.0
  Accts. receivable     880.0   Notes payable     600.0
  Inventories   1,320.0   Accruals      400.0
  Total current assets $2,340.0   Total current liabilities $1,800.0
      Long-term bonds   1,000.0
      Total debt $2,800.0
      Common stock      200.0
      Retained earnings   1,000.0
  Net plant & equip.   1,660.0   Total common equity $1,200.0
  Total assets $4,000.0   Total liabilities & equity $4,000.0
         
INCOME STATEMENT      
  Net sales $6,000.0      
  Operating costs   5,599.8      
  Depreciation      100.2      
  EBIT $   300.0      
  Less: Interest        96.0      
  EBT $   204.0      
  Less: Taxes        81.6      
  Net income $   122.4      
OTHER DATA  

 
  Shares outstanding 60.00   

 
  Common dividends $42.8   

 
  Federal plus state income tax rate 40%

 
  Year-end stock price $30.60   

 
           


 
Use Scenario 1 to answer the question. What is the firm's net profit margin?

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