Question 1
Selected data from the 2017 financial statements of KRJ Manufacturing are presented below. Calculate the gross profit margin, presenting your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Sales
|
$105,685
|
|
Cost of goods sold
|
$47,471
|
|
Operating profits (EBIT)
|
$32,493
|
|
Earnings before taxes (EBT)
|
$20,192
|
|
Net profits
|
$19,044
|
|
Tax expense
|
7,370
|
|
Depreciation expense
|
$12,140
|
|
Total assets, Dec. 31, 2016
|
$81,858
|
|
Total assets, Dec. 31, 2017
|
$88,360
|
|
Total equity, Dec. 31, 2016
|
$46,002
|
|
Total equity, Dec. 31, 2017
|
$42,584
|
|
Cash flow from operations
|
$26,353
|
Question 2
Selected ratios calculated using data taken from the 2017 financial statements of KRJ Manufacturing are presented below. Calculate the return on equity for the year in percentage terms, rounded to two decimal places. e.g. 20.00%.
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Net profit margin
|
9.52%
|
|
Total asset turnover
|
1.26
|
|
Financial leverage multiplier
|
1.92
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Question 3
Selected data from the 2017 financial statements of KRJ Manufacturing are presented below. Calculate the cash flow margin based on the proxy for cash flow, presenting your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Sales
|
$104,311
|
|
Gross profits
|
$58,916
|
|
Operating profits (EBIT)
|
$27,338
|
|
Earnings before taxes (EBT)
|
$22,559
|
|
Net profits
|
$15,475
|
|
Tax expense
|
9,063
|
|
Depreciation expense
|
$10,436
|
|
Total assets, Dec. 31, 2016
|
$87,311
|
|
Total assets, Dec. 31, 2017
|
$88,281
|
|
Total equity, Dec. 31, 2016
|
$48,650
|
|
Total equity, Dec. 31, 2017
|
$45,581
|
|
Cash flow from operations
|
$30,432
|
Question 4
Selected data from the 2017 financial statements of KRJ Manufacturing are presented below. Calculate the return on assets for the year, presenting your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Sales
|
$114,763
|
|
Gross profits
|
$52,689
|
|
Operating profits (EBIT)
|
$26,301
|
|
Earnings before taxes (EBT)
|
$21,266
|
|
Net profits
|
$16,437
|
|
Tax expense
|
8,992
|
|
Depreciation expense
|
$11,097
|
|
Total assets, Dec. 31, 2016
|
$86,318
|
|
Total assets, Dec. 31, 2017
|
$83,618
|
|
Total equity, Dec. 31, 2016
|
$49,988
|
|
Total equity, Dec. 31, 2017
|
$44,544
|
|
Cash flow from operations
|
$30,005
|
Question 5
Selected data from the 2017 financial statements of KRJ Manufacturing are presented below. Calculate the cash flow margin based on the cash flow from operations, presenting your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Sales
|
$108,084
|
|
Gross profits
|
$57,055
|
|
Operating profits (EBIT)
|
$30,964
|
|
Earnings before taxes (EBT)
|
$24,668
|
|
Net profits
|
$19,561
|
|
Tax expense
|
9,494
|
|
Depreciation expense
|
$11,866
|
|
Total assets, Dec. 31, 2016
|
$87,006
|
|
Total assets, Dec. 31, 2017
|
$81,244
|
|
Total equity, Dec. 31, 2016
|
$42,062
|
|
Total equity, Dec. 31, 2017
|
$40,956
|
|
Cash flow from operations
|
$33,260
|
Question 6
Selected data from the 2017 financial statements of KRJ Manufacturing are presented below. Calculate the net operating profit margin, presenting your answer in percentage terms, rounded to two decimal places. e.g. 20.00%. Recall that in calculating the net operating profits after taxes, the tax rate is found by dividing tax expense by earnings before tax.
|
Sales
|
$115,918
|
|
Gross profits
|
$53,469
|
|
Operating profits (EBIT)
|
$30,513
|
|
Earnings before taxes (EBT)
|
$26,562
|
|
Net profits
|
$15,000
|
|
Tax expense
|
10,758
|
|
Depreciation expense
|
$10,128
|
|
Total assets, Dec. 31, 2016
|
$88,654
|
|
Total assets, Dec. 31, 2017
|
$80,751
|
|
Total equity, Dec. 31, 2016
|
$42,893
|
|
Total equity, Dec. 31, 2017
|
$41,805
|
|
Cash flow from operations
|
$30,225
|
Question 7
Selected data from the 2017 financial statements of KRJ Manufacturing are presented below. Calculate the net profit margin, presenting your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Sales
|
$103,050
|
|
Gross profits
|
$58,354
|
|
Operating profits (EBIT)
|
$34,351
|
|
Earnings before taxes (EBT)
|
$27,610
|
|
Net profits
|
$19,344
|
|
Tax expense
|
6,464
|
|
Depreciation expense
|
$11,307
|
|
Total assets, Dec. 31, 2016
|
$86,503
|
|
Total assets, Dec. 31, 2017
|
$88,615
|
|
Total equity, Dec. 31, 2016
|
$42,151
|
|
Total equity, Dec. 31, 2017
|
$48,262
|
|
Cash flow from operations
|
$25,255
|
Question 8
Selected data from the 2017 financial statements of KRJ Manufacturing are presented below. Calculate the financial leverage multiplier for the year, rounded to two decimal places. e.g. 20.00.
|
Sales
|
$115,153
|
|
Gross profits
|
$91,186
|
|
Operating profits (EBIT)
|
$26,362
|
|
Earnings before taxes (EBT)
|
$26,778
|
|
Net profits
|
$15,978
|
|
Tax expense
|
8,225
|
|
Depreciation expense
|
$12,452
|
|
Total assets, Dec. 31, 2016
|
$106,694
|
|
Total assets, Dec. 31, 2017
|
$107,050
|
|
Total equity, Dec. 31, 2016
|
$54,183
|
|
Total equity, Dec. 31, 2017
|
$58,435
|
|
Cash flow from operations
|
$29,982
|
Question 9
Selected data from the 2017 financial statements of KRJ Manufacturing are presented below. Calculate the return on equity for the year, presenting your answer in percentage terms, rounded to two decimal places. e.g. 20.00%.
|
Sales
|
$105,684
|
|
Gross profits
|
$56,261
|
|
Operating profits (EBIT)
|
$34,509
|
|
Earnings before taxes (EBT)
|
$26,425
|
|
Net profits
|
$18,793
|
|
Tax expense
|
9,762
|
|
Depreciation expense
|
$13,773
|
|
Total assets, Dec. 31, 2016
|
$82,395
|
|
Total assets, Dec. 31, 2017
|
$81,364
|
|
Total equity, Dec. 31, 2016
|
$46,665
|
|
Total equity, Dec. 31, 2017
|
$44,271
|
|
Cash flow from operations
|
$34,337
|
Question 10
Selected data from the 2017 financial statements of KRJ Manufacturing are presented below. Calculate the total asset turnover for the year, rounded to two decimal places. e.g. 20.00.
|
Sales
|
$192,419
|
|
Gross profits
|
$69,777
|
|
Operating profits (EBIT)
|
$26,046
|
|
Earnings before taxes (EBT)
|
$21,570
|
|
Net profits
|
$16,618
|
|
Tax expense
|
9,750
|
|
Depreciation expense
|
$13,175
|
|
Total assets, Dec. 31, 2016
|
$89,657
|
|
Total assets, Dec. 31, 2017
|
$83,251
|
|
Total equity, Dec. 31, 2016
|
$49,478
|
|
Total equity, Dec. 31, 2017
|
$45,277
|
|
Cash flow from operations
|
$26,993
|