(Answered) Determine the pretax and after-tax profit margins for the

Finance

Determine the pretax and after-tax profit margins for the construction company in Figures 6-1 and 6-2. What insight does this give you into the company's financial operations?

Figures 6-1 WEST MOUNTAIN CONSTRUCTION

BLANCE SHEET

Figures 6-2 WEST MOUN

TAIN CONSTRUCTION

INCOME STATEMENT

REVENUES ................ 789,839

CONSTRUCTION COSTS

aterials ................. 92,214

Labor ................... 199,690

Subcontract ................ 401,948

Equipment ................. 20,833

Other ................... 1,352

Total Construction Costs .......... 716,037

EQUIPMENT COSTS

Rent and Lease Payments .......... 3,773

Depreciation ................ 6,673

Repairs and Maintenance ........... 2,734Fuel and Lubrication ............ 7,289

Taxes, Licenses, and Insurance ....... 364

Equipment Costs Charged to Jobs ...... 20,833

Total Equipment Costs ........... 0

GROSS PROFIT .............. 73,802

OVERHEAD .............. 53,827NET PROFIT FROM OPERATIONS .... 19,975XPENSE ...... 1,162

PROFIT BEFORE TAXES ......... 21,137

INCOME TAX .............. 3,921

PROFIT AFTER TAXES .......... 17,216

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