This paper circulates around the core theme of The following information pertains to Rural Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.What is the profit margin for Rural? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
The
following information pertains to Rural Company. Assume that all balance sheet
amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash
and short-term investments $ 40,000
Accounts
receivable (net) 30,000
Inventory 25,000
Property,
plant and equipment 215,000
Total Assets $310,000
Liabilities and Stockholders’ Equity
Current
liabilities $ 60,000
Long-term
liabilities 75,000
Stockholders’
equity—common 175,000
Total Liabilities and
Stockholders’ Equity $310,000
Income Statement
Sales $ 130,000
Cost of
goods sold 45,000
Gross
profit 85,000
Operating
expenses 25,000
Net income $ 60,000
Number of shares of common stock 5,000
Market
price of common stock $22
Dividends
per share 1.00
What is the profit margin for Rural?
