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Lucrative Corporation

Consolidated Income Statement

Year ended December 31 (in $ millions)

 

2006

2005

Total sales

610.1

578.3

Cost of sales

(500.2)

(481.9)

Gross profit

109.9

96.4

Selling, general, and

administrative expenses

(40.5)

(39.0)

Research and development

(24.6)

(22.8)

Depreciation and amortization

(3.6)

(3.3)

Operating income

41.2

31.3

Other income

---

---

Earnings before interest and taxes (EBIT)

41.2

31.3

Interest income (expense)

(25.1)

(15.8)

Pretax income

16.1

15.5

Taxes

(5.5)

(5.3)

Net income

10.6

10.2

 

 

 

Price per share

$16

$15

Shares outstanding (millions)

10.2

8.0

Stock options outstanding (millions)

0.3

0.2

 

 

 

Stockholders' Equity

126.6

63.6

Total Liabilities and Stockholders' Equity

533.1

386.7

Show computations.

[A] For the year ending December 31, 2006 find out Lucrative's earnings per share?

[B] Suppose that Lucrative has no convertible bonds outstanding. Then for the year ending December 31, 2006 find out Luther's diluted earnings per share?

[C] find out Lucrative's Operating Margin for the year ending December 31, 2005?

[D] find out Lucrative's Net Profit Margin for the year ending December 31, 2005?

[E] find out Lucrative's earnings before interest, taxes, depreciation, & amortization (EBITDA) for the year ending December 31, 2006?

[F] find out Lucrative's returns on equity (ROE) for the year ending December 31, 2006?

[G] find out Lucrative's price - earnings ratio (P/E) for the year ending December 31, 2006?

[H] If Locative's accounts receivable were $55.5 million in 2006, then compute Luther's accounts receivable days for 2006.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M922536

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