60.1K

Verified Solution

Link Copied!

Profitability Ratios The 2018 income statement for TeleTech is shown here Net Sales Cost of Goods Sold Gross Profit Selling and Admin. Expenses Depreciation Expense Operating Income (EBIT) Interest Expense Income before Taxes (EBT) Taxes (25%) Net Income Bl. Calculate the following: a. Gross profit margin $35,000,000 15.000.000 20,000,000 1,000,000 3,000,000 16,000,000 2.500.000 13,500,000 3,375,000 10,125,000 b. Operating profit margin c. Net profit margin Liquidity Ratios B2. Bob has notes payable of $500, long-term debt of $1,900, inventory of $900, total current assets of $5,000, accounts payable of $850, and accrued expenses of $600. a What is Bob's current ratio? b. What is its quick ratio? For problems B3-B6, refer to the consolidated income statement and consolidated balance sheet of Tentade Acres Company and Subsidiaries that follow. SHOW ALL WORK. Tentacle Acres Company and Subsidiaries Income Statement for 2018 (000 dollars) Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses Depreciation and R&D Expense (both tax deductible) EBIT or Operating Income Interest Expense Interest Income Earnings Before Taxes (EBT) Income Taxes Net Income (NI) Earnings per Share $ 94,001 46,623 47,378 28,685 5,752 12,941 48 427 13,320 4,700 8,620 1.72 Tentacle Acres Company and Subsidiaries Balance Sheet as of End of 2018 (000 dollars) Assets: Cash Marketable Securities Accounts Receivable (gross) Less: Allowance for Bad Debts Accounts Receivable (net) Inventory Prepaid Expenses Plant and Equipment (gross) Less: Accumulated Depreciation Plant and Equipment (net) Land Long-Term Investments Total Assets $ 5,534 952 14,956 211 14,745 10,733 3,234 57,340 29,080 28,260 1,010 2,503 66,971

Answer & Explanation Solved by verified expert

See Answer