Use the information below to answer the questions below. Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) 2015 2014 Total sales 610.1 578.3 Cost of sales (500.2) (481.9) Gross profit 109.9 96.4 Selling, general, and administrative expenses (40.5) (39.0) Research and development (24.6) (22.8) Depreciation and amortization (3.6) (3.3) Operating income 41.2 31.3 Other income --- --- Earnings before interest and taxes (EBIT) 41.2 31.3 Interest income (expense) (25.1) (15.8) Pretax income 16.1 15.5 Taxes (5.5) (5.3) Net income 10.6 10.2 Price per share $16 $15 Shares outstanding (millions) 10.2 8.0 Stock options outstanding (millions) 0.3 0.2 Shareholders' Equity 126.6 63.6 Total Liabilities and Shareholders' Equity 533.1 386.7 a)Calculate Luther’s operating margin in percentage terms for the year ended 2015. b) Calculate Luther's return on assets (ROA) for the year ending December 31, 2015
Use the information below to answer the questions below.
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Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) |
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2015 |
2014 |
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Total sales |
610.1 |
578.3 |
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|
Cost of sales |
(500.2) |
(481.9) |
|
|
Gross profit |
109.9 |
96.4 |
|
|
Selling, general, and administrative expenses |
(40.5) |
(39.0) |
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|
Research and development |
(24.6) |
(22.8) |
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|
|
(3.6) |
(3.3) |
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|
Operating income |
41.2 |
31.3 |
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|
Other income |
--- |
--- |
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|
Earnings before interest and taxes (EBIT) |
41.2 |
31.3 |
|
|
Interest income (expense) |
(25.1) |
(15.8) |
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|
Pretax income |
16.1 |
15.5 |
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|
Taxes |
(5.5) |
(5.3) |
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|
Net income |
10.6 |
10.2 |
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|
|
|
|
|
|
Price per share |
$16 |
$15 |
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Shares outstanding (millions) |
10.2 |
8.0 |
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|
Stock options outstanding (millions) |
0.3 |
0.2 |
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|
|
|
|
|
|
Shareholders' Equity |
126.6 |
63.6 |
|
|
Total Liabilities and Shareholders' Equity |
533.1 |
386.7 |
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a)Calculate Luther’s operating margin in percentage terms for the year ended 2015.
- b) Calculate Luther's
return on assets (ROA) for the year ending December 31, 2015
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