Earnings and Expenses (Year Ending January 2012) $100,000,000 $85,000,000 $10,300,000 Sales Cost of goods sold (COGS) Pretax earnings Selected Balance Sheet Items Merchandise Inventory Total assets $5,150,000 $11,000,000

Earnings and Expenses (Year Ending January 2012) $100,000,000 $85,000,000 $10,300,000 Sales Cost of goods sold (COGS) Pretax earnings Selected Balance Sheet Items Merchandise Inventory Total assets $5,150,000 $11,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Delaney's Stores has posted the following yearly earnings and expenses. Suppose COGS and merchandise inventory were each cut by 5℅. The new pretax profit margin is

Earnings and Expenses (Year Ending January 2012)
$100,000,000
$85,000,000
$10,300,000
Sales
Cost of goods sold (COGS)
Pretax earnings
Selected Balance Sheet Items
Merchandise Inventory
Total assets
$5,150,000
$11,000,000

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