Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. income statement for xenon manufacturing: 20

Income Statement for Xenon Manufacturing: 2014 2015 ...

80.2K

Verified Solution

Question

Finance

Income Statement for Xenon Manufacturing:

2014 2015
Total sales 202 212
Cost of sales -148 -172
Gross Profit 54 40
Selling, general, and administrative expenses -22 -20
Research and development -8 -7
Depreciation and amortization -4 -3
Operating Income 20 10
Other income 4 6
Earnings before interest and taxes (EBIT) 24 16
Interest income (expense) -7 -4
Pretax income 14 12
Taxes -4 -3
Net Income 10 9

Consider the above Income Statement for Xenon Manufacturing. All values are in millions of dollars. Calculate the operating margin for 2014 and 2015. What does the change in the operating margin between these two years imply about the company?

Question 3 options:

The ability of Xenon Manufacturing to sell its goods and services for more than the costs of producing them rose between 2014 and 2015.

The leverage of Xenon Manufacturing fell slightly between 2014 and 2015.

The efficiency of Xenon Manufacturing has significantly risen between 2014 and 2015.

The efficiency of Xenon Manufacturing has significantly fallen between 2014 and 2015.

The revenues available to equity holders fell slightly between 2014 and 2015.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students