Calculating Gross Profit Margin - 275 Words

Calculating Gross Profit Margin (Essay Sample) Content: Gross profit (2010) = sales- cost of goods sold=7920-4200=3720Time interest ratio = earnings before interest and tax /interest expenseTotal expenses (2010) =depreciation +interest exp+operating expense=400+280+2130=2810Earnings before int. and tax= gross profit à ¢Ã¢â€š ¬ (operating expenses +depreciation)=3720-2530=1190Interest expense=280=1190/280=4.2521.Return on equity =net income /shareholdersà ¢Ã¢â€š ¬ equityNet income before tax=3720-2810=910Shareholder equity =Asset = ownerà ¢Ã¢â€š ¬s equity +liabilitiesAssets =1660+75+4390+6920=13045Liabilities=320+165+4500+600=5585Equity= asset-liabilities=13045-5585=7460ROE=910/7460*100=12.1984%Cash flow from operating activities (2011)= EBIT+DEPRECIATION- TAXESGross profit (2011)=8980-4700=4280Less expenses=+2210+560=2770Earnings before int and tax=4280-2770=1510Cash flow from operating activities=1510+560-460+300=1910Working capital changes = (decrease in inventory) =4390-43050=340Decrease in receivable=1660-1610=50Inc rease in accruals = (300-165)=135Cash flow from investing activities==7180-6920=260Financing activities+1660-1350=31025.Cash flow from operating activitiesBalance sheetCash50000