Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The following data and information are provided for Waltz Corporation. Use net income after taxes as margin.
Sales Revenue $1,000,000 Average total assets used during the year = $200,000
Cost of Goods Sold -500,000 Inventory = $60,000
Gross Margin 500,000 Long-term liabilities = $100,000
Selling Expenses -386,000 Accounts receivable = $10,000
Administrative Expenses -80,000 Cost of total invested capital = 12%
Net Operating Income 34,000 Fixed expenses = $300,000
Other Income & Expense -6,000 Variable expenses = 666,000
Net Income before Taxes 28,000 Average price per unit sold = $10
Income Taxes -8,000
Net Income after Taxes $ 20,000
A. What is the company’s margin (net income after taxes) as a percentage (this is return on sales) and its asset utilization (also called asset velocity and asset turnover)?
B. What is the company’s
C. Is management creating or destroying wealth (stock price)?
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