Year ended December 31 (in Smillions) 2006 2005 Total sales 610.1 558.8 (366) 192.8 Cost of sales (500 2) 109.9 Gross profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating income Other income Eamings before interest and taxes (EBIT) Interest income (expense) (40.5) (24.6) (3.6) (36.5) (20.5) (3.3) 41.2 132.5 -- -- 41.2 132.5 (25.1) (14.4) 118.1 Pretax income 16.1 Taxes (5.5) 10.6 (41.335) 76.765 Net income Price per share Sharing outstanding (millions) Stock options outstanding (millions) $16 $15 10.2 0.3 8.0 0.2 Stockholders' Equity Total Liabilities and Stockholders' Equity 126.6 63.6 386.7 533.1 Refer to the income statement above. Luther's net profit margin for the year ending December 31, 2005 is closest to: OA. 1374% O B. 6.87% OC. 10.99 % OD. 16 49%
Year ended December 31 (in Smillions) 2006 2005 Total sales 610.1 558.8 (366) 192.8 Cost of sales (500 2) 109.9 Gross profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating income Other income Eamings before interest and taxes (EBIT) Interest income (expense) (40.5) (24.6) (3.6) (36.5) (20.5) (3.3) 41.2 132.5 -- -- 41.2 132.5 (25.1) (14.4) 118.1 Pretax income 16.1 Taxes (5.5) 10.6 (41.335) 76.765 Net income Price per share Sharing outstanding (millions) Stock options outstanding (millions) $16 $15 10.2 0.3 8.0 0.2 Stockholders' Equity Total Liabilities and Stockholders' Equity 126.6 63.6 386.7 533.1 Refer to the income statement above. Luther's net profit margin for the year ending December 31, 2005 is closest to: OA. 1374% O B. 6.87% OC. 10.99 % OD. 16 49%
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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6. Refer to the income statement above. Luther's net profit margin for the year ending December 31, 2005 is closest to:
Transcribed Image Text:Luther Corporation
Consolidated Income Statement
Year ended December 31 (in Smillions)
2006
2005
Total sales
610.1
558.8
(500.2)
109.9
(366)
Cost of sales
Gross profit
Selling, general, and
administrative expenses
Research and development
Depreciation and amortization
Operating income
Other income
192.8
(40.5)
(24.6)
(3.6)
41.2
(36.5)
(20.5)
(3.3)
132.5
--
--
Eamings before interest and taxes (EBIT)
Interest income (expense)
41.2
132.5
(25.1)
16.1
(14.4)
118.1
Pretax income
Тахes
(5.5)
(41.335)
76.765
Net income
10.6
Price per share
Sharing outstanding (millions)
Stock options outstanding (millions)
$16
$15
10.2
8.0
0.3
0.2
.2
Stockholders' Equity
Total Liabilities and Stockholders' Equity
126.6
63.6
533.1
386.7
Refer to the income statement above. Luther's net profit margin for the year ending December 31, 2005 is dlosest to:
O A. 13.74%
O B. 6.87%
OC. 10.99%
O D. 16.49%
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