What was the firms operating profit

Assignment Help Financial Management
Reference no: EM13765420

Lurch Fuel Pumps, Inc. had sales of $2,500,000 and cost of goods sold of $1,710,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,680,000. What was the firm’s operating profit?

Reference no: EM13765420

Questions Cloud

Construct one original descriptive argument : Descriptions "describe"-they depict the "what is" of a statement. Prescriptions "prescribe"-they express the "what ought to be" of a statement. Construct one original descriptive argument and one original prescriptive argument for the topic you sel..
Types of risk that come into play during the audit process : There are many types of risk that come into play during the audit process. Describe the following four main risks:
Bond makes annual payments and matures four years : You purchased one EAW, Inc. 6 percent coupon bond one year ago for $1,020. The bond makes annual payments and matures four years from now. You sell the bond today when the required return is 5 percent. The inflation rate was 2.8 percent over the past..
Role in the auditing process and profession : Ethics plays a major role in the auditing process and profession. Discuss the ethical theories that can be utilized to deal with issues that can arise during the audit process. Address the following topics:
What was the firms operating profit : Lurch Fuel Pumps, Inc. had sales of $2,500,000 and cost of goods sold of $1,710,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,680,000. What was the firm’s operating prof..
What accounts are included in the revenue cycle : 1. What accounts are included in the revenue cycle? 2. Discuss the U.S. Securities Exchange Commission's (SEC) criteria for revenue recognition.
One-year bond offers a yield and bond : A one-year bond offers a yield of 6% and a two year bond offers a yield of 7.5%. Under the expectations theory what should be the yield on a one year bond next year?
Advantages of each type of statistical data analysis method : What are the advantages and disadvantages of each type of statistical data analysis method? Explain. Which method do you prefer to use most? Why
Planning your retirement and you come to the conclusion : You are planning your retirement and you come to the conclusion that you need to have saved $1,250,000 in 30 years. You can invest into an retirement account that guarantees you a 5% annual return. How much do you have to put into your account at the..

Reviews

Write a Review

Financial Management Questions & Answers

  Why do bubbles and bursts occur in financial markets

Why do bubbles and bursts occur in financial markets? In discussing this issue, you need to focus on the rationality of investors, the availability of information to different categories of investors, and the use of historical data in financial d..

  Managers should base pricing decisions on both cost and

1.managers should base pricing decisions on both cost and market factors. in addition they must also consider legal

  Should the new lathe be purchased

The firm estimates the revenues and expenses for the new and the old lathes to be as shown in the following table. The firm is subject to a 40% tax rate. Should the new lathe be purchased?

  What is the amount of the collection float as of the end

As of this morning, your firm had a ledger balance of $775 with no outstanding deposits or checks. Today, your firm deposited six checks in the amount of $79 each and wrote a check in the amount of $330. What is the amount of the collection float as ..

  Determine ratios relating to profitability and liquidity

Determine suitable ratios relating to profitability, liquidity, efficiency and gearing.

  What are the no-arbitrage boundary conditions

What are the no-arbitrage boundary conditions for the value of a European vanilla Call option with strike price K1  - boundary conditions for the value of the European vanilla Call option

  Important factors for making a capital structure decision

What important factors, in addition to quantitative factors, should a firm consider when it is making a capital structure decision? How do these factors play in the decision?

  Fixed costs and average variable cost rate

Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $150 for each of its 20,000 members. Past experience indicates that the population..

  Calculate the holding period return

Calculate the holding period return and calculate the required return based o the CAPM - calculate the coefficient of variation

  What is the marginal cost of borrowing

A bank offers two 30 year, fixed rate, fully amortizing LPMs: an 85% LTV loan at 6%, and an 80% LTV loan at 5.5%. What is the marginal cost of borrowing if the loan is going to be held for 10 years?

  What is the net present value

What is the Net Present Value (NPV) of the asset if the company's required rate of return on such assets is 10%?

  Statement of cash flows is the last of four financial

The statement of cash flows is the last of the four financial statements we discussed. Explain why this statement is important to investors and how it complements the income statement and balance sheet. You should be able to answer this question in s..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd