Procter & Gamble reported the following information for its fiscal year end: On net sales of $51.407 billion, the company earned net income after taxes of $6.481 billion. It had a cost of goods sold of $25.076 billion and EBIT of $9.827 billion. What are the companyâs gross profit margin, operating profit margin, and net profit margin? (Round answers to 1 decimal place, e.g.12.5%.) Gross profit margin % Operating profit margin % Net profit margin %
Procter & Gamble reported the following information for its fiscal year end: On net sales of $51.407 billion, the company earned net income after taxes of $6.481 billion. It had a cost of goods sold of $25.076 billion and EBIT of $9.827 billion. What are the companyâs gross profit margin, operating profit margin, and net profit margin? (Round answers to 1 decimal place, e.g.12.5%.) Gross profit margin % Operating profit margin % Net profit margin %
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On the following page are the Consolidated Statements of Income and Parent Company Profit and Loss Statement of Vantaa Corporation (Finland) from the companyâs 2009 annual report.
| Vantaa Corporation Consolidated Statements of Income June 30, 2009 | |
| 2009 FIM million | |
| Net sales | 12,795 |
| Cost of goods sold | (9,178) |
| Gross profit | 3,617 |
| Selling, marketing, and administrative expenses | (1,328) |
| Other income and expenses, net | 204 |
| Operating profit | 2,493 |
| Share in results of associated companies | 2 |
| Interest and other financial expenses, net | (78) |
| Profit before extraordinary items and income taxes | 2,417 |
| Extraordinary items | - |
| Profit before income taxes | 2,417 |
| Income taxes | (962) |
| Profit before minority interest | 1,455 |
| Minority interests | - |
| Net profit | 1,455 |
| Earnings per share, FIM | 15.47 |
| Vantaa Corporation Parent Company Profit and Loss Statement June 30, 2009 | |
| 2009 FIM million | |
| Net sales | 20 |
| Cost of goods sold | (29) |
| Gross margin | (9) |
| Administrative expenses | (50) |
| Other income and expenses, net | 125 |
| Operating profit | 66 |
| Interest and other financial expenses, net | (173) |
| Loss before contribution, untaxed reserves and income taxes | (107) |
| Group contributions | 470 |
| Decrease in untaxed reserves | - |
| Increase in accelerated depreciation | (1) |
| Profit before income taxes | 362 |
| Income taxes | (108) |
| Net profit | 254 |
Compare the net income and other important items in the two financial statements. Does this influence your opinion about the operating performance of the company? In your opinion, which statement is more informative from 1) a user perspective, 2) a management perspective?
Data for Barry Computer Co. and its industry averages follow.
| Barry Computer Company: | ||||
| Balance Sheet as of December 31, 2012 (In Thousands) | ||||
| Cash | $159,750 | Accounts payable | $191,700 | |
| Receivables | 559,125 | Notes payable | 95,850 | |
| Inventories | 415,350 | Other current liabilities | 127,800 | |
| Total current assets | $1,134,225 | Total current liabilities | $415,350 | |
| Long-term debt | $479,250 | |||
| Net fixed assets | 463,275 | Common equity | 702,900 | |
| Total assets | $1,597,500 | Total liabilities and equity | $1,597,500 | |
| Barry Computer Company: Income Statement for Year Ended December 31, 2012 (In Thousands) | |||
| Sales | $2,250,000 | ||
| Cost of goods sold | |||
| Materials | $922,500 | ||
| Labor | 630,000 | ||
| Heat, light, and power | 67,500 | ||
| Indirect labor | 180,000 | ||
| Depreciation | 45,000 | $1,845,000 | |
| Gross profit | $405,000 | |
| Selling expenses | 225,000 | |
| General and administrative expenses | 67,500 | |
| Earnings before interest and taxes (EBIT) | $112,500 | |
| Interest expense | 43,133 | |
| Earnings before taxes (EBT) | 69,367 | |
| Federal and state income taxes (40%) | 27,747 | |
| Net income | $41,620 |
Calculate the indicated ratios for Barry. Round your answers to two decimal places.
| Ratio | Barry | Industry Average |
| Current | x | 2.70x |
| Quick | x | 1.75x |
| Days sales outstandinga | days | 42.38days |
| Inventory turnover | x | 5.91x |
| Total assets turnover | x | 1.59x |
| Net profit margin | % | 1.73% |
| ROA | % | 2.74% |
| ROE | % | 6.30% |
| Total debt/total assets | % | 56.52% |
aCalculation is based on a 365-day year.
Construct the extended Du Pont equation for both Barry and the industry. Round your answers to two decimal places.
| FIRM | INDUSTRY | |
| Net profit margin | % | 1.73% |
| Total assets turnover | x | 1.59x |
| Equity multiplier |
