Posted: July 10th, 2016

compute the Profit Margin on Sales?

Refer to the consolidated balance sheets.

Required:

Prepare a common size balance sheet at December 27, 2008, using the following caption:

Total current assets
Property, plant, and equipment (net)
Marketable equity securities and other long-term investments
Goodwill and other long-term assets
Total assets
Total current liabilities
Total long-term liabilities (including deferred tax liabilities)
Total stockholder’s equity
Total liabilities and stockholder’s equity

Income Statement
The CEO of Smartphone Apps, LLC is preparing a loan application. Using the data below (only), prepare an Income Statement. Within this Income statement, include totals for Gross Margin, Sales General, and Administrative, Earnings before Interest and Taxes, Pretax Income, and Net Income. Also compute the Profit Margin on Sales. Submit using a spreadsheet.

Net Revenue……………………$1,458,000
Production Labor Costs…….$385,444
Material Costs………………….$247,500
Marketing………………………..$127,000
Depreciation…………………….$58,122
Research and Development.$98,000
Administrative…………………..$258,300
Interest Expense……………….$21,608
Taxes…………………………………25% of pretax income