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
| Year 1 | Year 2 | Year 3 | Year 4 | |||||
| $ | % | $ | % | $ | % | $ | % | |
| Net Sales | $ 500,000.00 | 100.00% | $ 540,000.00 | 100.00% | $ 577,800.00 | 100.00% | $ 612,468.00 | 100.00% |
| Cost of goods | 265,000.00 | 53.00% | $ 283,500.00 | 52.50% | $ 300,456.00 | 52.00% | $ 321,545.70 | 52.50% |
| Gross Margin | 235,000.00 | 47.00% | $ 256,500.00 | 47.50% | $ 277,344.00 | 48.00% | $ 290,922.30 | 47.50% |
| Operating expenses | 210,000.00 | 42.00% | $ 226,800.00 | 42.00% | $ 245,565.00 | 42.50% | $ 257,236.56 | 42.00% |
| Operating proft | 25,000.00 | 5.00% | $ 29,700.00 | 5.50% | $ 31,779.00 | 5.50% | $ 33,685.74 | 5.50% |
- Supposing that Mr. Ptolemy achieved his Year 3 and Year 4 performance goals as planned, compare the Year 1 through Year 4 yearly results.
- Hint: Calculate ‘ trends’ from Year 1 to Year 2, from Year 2 to Year 3, and from Year 3 to Year 4 in terms of NS, COGS, GM,OE and profit. Show your calculations and interpret the meaning of the obtained trend figures.
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Year 1-2 |
Year 2-3 |
Year 3-4 |
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Net sales |
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Cost of goods |
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Gross margin |
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Operating expenses |
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Operating profit |
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