Part -1:

Frantic Fast Foods had earnings after taxes of $1,200,000 in the year 2009 with 322,000 shares outstanding. On January 1, 2010, the firm issued 30,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 24 percent.

(a) Compute earnings per share for the year 2009. (Round your answer to 2 decimal places. Omit the "3.Problem 2-4 Operating profit [LO1]
A-Rod Fishing Supplies had sales of $2,160,000 and cost of goods sold of $1,550,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,450,000.

What was the firm's operating profit?

Earnings per share

(b) Compute earnings per share for the year 2010. (Round your answer to 2 decimal places. Omit the "3.Problem 2-4 Operating profit [LO1]
A-Rod Fishing Supplies had sales of $2,160,000 and cost of goods sold of $1,550,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,450,000.

What was the firm's operating profit?

Part -2:

Hillary Swank Clothiers had sales of $428,000 and cost of goods sold of $260,000.

(a) What is the gross profit margin (ratio of gross profit to sales)? (Round your answer to the nearest whole percentage. Omit the "%" sign in your response.)

Gross profit margin

(b) If the average firm in the clothing industry had a gross profit of 35 percent, how is the firm doing?

Part 3.

A-Rod Fishing Supplies had sales of $2,160,000 and cost of goods sold of $1,550,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,450,000.

What was the firm's operating profit?