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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
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:
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%
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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