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    ABC Financial Ratios

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    Refer to the financial statements to answer the following questions.

    How profitable was ABC Company when comparing their Gross Margin to total sales? (Find a percentage)

    How profitable was ABC Company when comparing their Net Income to total sales? (Find a percentage)

    What was ABC Company's Earnings Per Share?

    What was ABC Company's Price to Earnings Ratio on 12/31/06?

    What was ABC Company's EBIT (Earnings Before Interest and Taxes)?

    What was ABC Company's Current Ratio?

    What was ABC Company's Acid Test Ratio?

    What percentage of ABC Company's Assets are financed by debt?

    What percentage of ABC Company's Assets are fully paid for?

    What was ABC Company's Return on Equity? (Find a percentage)

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    https://brainmass.com/business/financial-ratios/abc-financial-ratios-178066

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    1. How profitable was ABC Company when comparing their Gross Margin to total sales? (Find a percentage)

    The ratio for this is the gross margin percentage = gross margin/total sales or (sales - cost of sales)/sales
    Gross margin percentage = (27973 - 18,990)/27973 = 32.11%

    2. How profitable was ABC Company when comparing their Net Income to total sales? (Find a percentage)

    Net profit ...

    Solution Summary

    The solution answers questions based on different ratios contained from financial statements of a company.

    $2.49

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