Chapter 11
Financial Statement Analysis
547
Application Questions Group A
AP-1A (
4
)
Simply Mullet Company reported the following.
• Sales: $1 million
• Cost of Goods Sold: $0.7 million
• Operating Expenses: $0.4 million
• Income Taxes: $0.2 million
Calculate the gross profit margin. Differentiate between gross profit margin and gross profit.
AP-2A (
4
5
)
Trooper Nova Company reported the following.
Sales
$2.0 million
Cost of Goods Sold
0.7 million
Operating Expenses
0.4 million
Interest Expense included in Operating Expenses
0.05 million
Income Taxes
40% of income before tax
Shareholders’ Equity (Average)
$20.0 million
