What is the companys net profit margin percentage for year

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Reference no: EM131773822

Problem - Marovich Corporation has provided the following financial data:


Year 2

Year 1

Total assets     

$1,332,000

$1,300,000

Common stock, $4 par value   

$200,000

$200,000

Total stockholders' equity        

$1,042,000

$1,010,000

 

Income Statement For the Year Ended December 31, Year 2

Sales (all on account)   

$1,230,000

Cost of goods sold      

810,000

Gross margin   

420,000

Operating expenses     

355,615

Net operating income   

64,385

Interest expense           

9,000

Net income before taxes          

55,385

Income taxes (35%)    

19,385

Net income      

$36,000

Dividends on common stock during Year 2 totaled $4,000. The market price of common stock at the end of Year 2 was $6.41 per share.

Required:  Show all Work!

a. What is the company's net profit margin percentage for Year 2?

b. What is the company's gross margin percentage for Year 2?

c. What is the company's return on total assets for Year 2?  (Use Net Operating Income for this calculation)

d. What is the company's return on equity for Year 2?

e. What is the company's earnings per share for Year 2?

f. What is the company's book value per share at the end of Year 2?

Reference no: EM131773822

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