. Advertisement .
..3..
Question 17 Assume a company’s Income Statement for Year 12 is as follows:
Income Statement Data | Year 12 (in 000s) |
Net Revenues from Footwear Sales | $ 580,000 |
Cost of Pairs Sold | 370, 000 |
Warehouse Expenses | 40, 000 |
Marketing Expenses | 75, 000 |
Administrative Expenses | 15, 000 |
Operating Profit (Loss) | 90, 000 |
Interest Income (Expense) | (15, 000) |
Pre-tax Profit (Loss) | 75, 000 |
Income Taxes | 22, 500 |
Net Profit (Loss) | $ 52, 500 |
Based on the above income statement data and assuming the company has 20 million shar of common stock outstanding, the company’s operating profit margin and EPS were
A. 12.93% and $3.75
B. 13.79% and $1.75
C. 15.52% and $4.50
D. 15.52% and $2.63
E. 9.05% and $3.75
♦ Relevant knowledge
EPS can be described as an abbreviation as earnings per Share. It is a crucial measurement of profitability, which provides an estimate of the amount of net earnings a company earns for every part of the common stock in circulation.
. Advertisement .
..4..
1 Answer