Please refer to Table 4 -3 for the following questions. Table 4-3 Emery Corporat

ID: 2660585 • Letter: P

Question

Please refer to Table 4-3 for the following questions.

Table 4-3
Emery Corporation
Balance Sheet Income Statement Assets: Cash $250,000 Sales (all credit) $8,000,000 Accounts receivable 450,000 Cost of goods sold (4,000,000) Inventory 500,000 Operating expense (2,900,000) Net fixed assets 2,100,000 Interest expense (150,000) Total assets $3,300,000 Income taxes (380,000) Net income $570,000 Liabilities and owners' equity: Accounts payable $100,000 Notes payable 450,000 Long-term debt 1,050,000 Owners' Equity 1,700,000 Total liabilities and owner's equity $3,300,000
Based on the information in Table 4-3, the operating profit margin is A) 13.75%.
B) 25.80%.
C) 33.33%.
D) 18.59%.
15. What was the average annual rate of return on long-term corporate bonds during the period 1926 to 2008? A) 6.5%
B) 8.3%
C) 5.9%
D) 6.2% Please refer to Table 4-3 for the following questions.

Table 4-3
Emery Corporation
Balance Sheet Income Statement Assets: Cash $250,000 Sales (all credit) $8,000,000 Accounts receivable 450,000 Cost of goods sold (4,000,000) Inventory 500,000 Operating expense (2,900,000) Net fixed assets 2,100,000 Interest expense (150,000) Total assets $3,300,000 Income taxes (380,000) Net income $570,000 Liabilities and owners' equity: Accounts payable $100,000 Notes payable 450,000 Long-term debt 1,050,000 Owners' Equity 1,700,000 Total liabilities and owner's equity $3,300,000
Based on the information in Table 4-3, the operating profit margin is A) 13.75%.
B) 25.80%.
C) 33.33%.
D) 18.59%.
Please refer to Table 4-3 for the following questions.

Table 4-3
Emery Corporation
Balance Sheet Income Statement Assets: Cash $250,000 Sales (all credit) $8,000,000 Accounts receivable 450,000 Cost of goods sold (4,000,000) Inventory 500,000 Operating expense (2,900,000) Net fixed assets 2,100,000 Interest expense (150,000) Total assets $3,300,000 Income taxes (380,000) Net income $570,000 Liabilities and owners' equity: Accounts payable $100,000 Notes payable 450,000 Long-term debt 1,050,000 Owners' Equity 1,700,000 Total liabilities and owner's equity $3,300,000
Based on the information in Table 4-3, the operating profit margin is A) 13.75%.
B) 25.80%.
C) 33.33%.
D) 18.59%.
Please refer to Table 4-3 for the following questions.

Table 4-3
Emery Corporation
Balance Sheet Income Statement Assets: Cash $250,000 Sales (all credit) $8,000,000 Accounts receivable 450,000 Cost of goods sold (4,000,000) Inventory 500,000 Operating expense (2,900,000) Net fixed assets 2,100,000 Interest expense (150,000) Total assets $3,300,000 Income taxes (380,000) Net income $570,000 Liabilities and owners' equity: Accounts payable $100,000 Notes payable 450,000 Long-term debt 1,050,000 Owners' Equity 1,700,000 Total liabilities and owner's equity $3,300,000
Based on the information in Table 4-3, the operating profit margin is Please refer to Table 4-3 for the following questions.

Table 4-3
Emery Corporation
Balance Sheet Income Statement Assets: Cash $250,000 Sales (all credit) $8,000,000 Accounts receivable 450,000 Cost of goods sold (4,000,000) Inventory 500,000 Operating expense (2,900,000) Net fixed assets 2,100,000 Interest expense (150,000) Total assets $3,300,000 Income taxes (380,000) Net income $570,000 Liabilities and owners' equity: Accounts payable $100,000 Notes payable 450,000 Long-term debt 1,050,000 Owners' Equity 1,700,000 Total liabilities and owner's equity $3,300,000
Based on the information in Table 4-3, the operating profit margin is 15. What was the average annual rate of return on long-term corporate bonds during the period 1926 to 2008? A) 6.5%
B) 8.3%
C) 5.9%
D) 6.2% 15. What was the average annual rate of return on long-term corporate bonds during the period 1926 to 2008? A) 6.5%
B) 8.3%
C) 5.9%
D) 6.2% What was the average annual rate of return on long-term corporate bonds during the period 1926 to 2008? What was the average annual rate of return on long-term corporate bonds during the period 1926 to 2008? Balance Sheet Income Statement Assets: Cash $250,000 Sales (all credit) $8,000,000 Accounts receivable 450,000 Cost of goods sold (4,000,000) Inventory 500,000 Operating expense (2,900,000) Net fixed assets 2,100,000 Interest expense (150,000) Total assets $3,300,000 Income taxes (380,000) Net income $570,000 Liabilities and owners' equity: Accounts payable $100,000 Notes payable 450,000 Long-term debt 1,050,000 Owners' Equity 1,700,000 Total liabilities and owner's equity $3,300,000

Explanation / Answer

Sales (all credit)

$8,000,000

Cost of good sold

($4,000,000)

Operating expenses

($2,900,000)

Interest expenses

($150,000)

Income taxes

($380,000)

Net Income

$570,000

Operating Margin = [Operating Income / Net Sales]

= [($8,000,000 - $4,000,000 - $2,900,000) / $8,000,000]

= [$1,100,000 / $8,000,000]

= 0.1375 (or) 13.75%

Therefore Operating Margin is 13.75. Hence, the correct option is (A) 13.75%