Reference no: EM133560570
Emma Corporation reports the following numbers:
Total sales $14,000,000
Invested capital $9,000,000
Net operating profit less adjusted taxes $1,600,000
Net operating profit $1,800,000
Interest expense $400,000
Lease expense $300,000
Total long-term debt $5,000,000
Total Assets $14,000,000
Market price per share $114
Earnings per share $10
Book value per share $34
3. What is Emma's net operating profit less adjusted taxes return on sales? If the industry average is 15%, did Emma do better or worse than the industry. Give an example (or reason) of how you can do better/worse than the industry.
4. What is Emma's times interest earned ratio?
If the industry average is 5 times, did Emma do better or worse than the industry.
Give an example (or reason) of how you can do better/worse than the industry.
5. What is Emma's fixed charge coverage ratio?
If the industry average is 3.6 times, did Emma do better or worse than the industry.
Give an example (or reason) of how you can do better/worse than the industry.