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Operating Profit Margin

Income Statement
Granny's Cat Farms, Inc.
Year Ending December 31, 200X
Revenue

Gross Sales 100000
Returns 5000
Net Sales 95000

Cost of Goods Sold 40000

Gross Margin 55000

Selling General and Administrative Expenses 15000
Depreciation 1500
Rent and Utilities 12000
Indirect Labor 5700

Total expenses 34200

Earnings Before Interest and Taxes 20800

Interest Expenses 5000

Earnings Before Taxes 29200

Taxes (30%) 8760

Net Income 20440

Balance Sheet
Granny's Cat Farms
As of December 31, 200X
End of 200X Beginning of 200X
Assets

Cash 50000 47500
Marketable Securities 25000 10000
Inventories (Cat Food, supplies, etc...) 12000 10000
Other Current Assets 15000 12000
Total Current Assets 102000 79500

Net Property, Plant and Equipment 125000 120000
Other Long Term Assets 15000 15000

Total Assets 242000 214500

Liabilities and Shareholders Equity

Accounts Payable 15000 12000
Short Term Debt 50000 45000
Other Current Liabilities 12000 11000
Total Current Liabilities 77000 68000
Long Term Debt (including leases) 65000 63000
Other Long-term Liabilities 20000 18000
Shareholders Equity 80000 65500

Given these statements, compute the following 12 ratios for 200X:

a. Long Term Debt Ratio
b. Total Debt Ratio
c. Times Interest Earned
d. Cash Coverage Ratio
e. Current Ratio
f. Quick Ratio
g. Operating Profit Margin
h. Inventory Turns
I. Days in Inventory
j. Average Collection Period
k. Return on Equity
l. Return on Assets

Please assist and show work so this can be a learning experience for me. Thanks!
(See attached file for full problem description)

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Income Statement
Granny's Cat Farms, Inc.
Year Ending December 31, 200X
Revenue

Gross Sales 100000
Returns 5000
Net Sales 95000

Cost of Goods Sold 40000

Gross Margin 55000

Selling General and Administrative Expenses 15000
Depreciation 1500
Rent and Utilities 12000
Indirect Labor 5700

Total expenses 34200

Earnings Before Interest and ...

Solution Summary

This provides the steps to calculate the Operating Profit Margin and other ratios

$2.19