Shown Below Are Selected Data from the Financial Statements of Supreme

question 101

Multiple Choice

Shown below are selected data from the financial statements of Supreme Co. Dollar amounts are in millions (except for the per share data) .
$$\begin{array}{l}\begin{array} { | l | r | } \hline \text { Income statement data: } & \\\hline \text { Net sales } & \mathbf { \$ 1 , 2 3 0 } \\\hline \text { Cost of goods sold } & \mathbf { 5 2 0 } \\\hline \text { Operating expenses } & \mathbf { 4 4 0 } \\\hline \text { Net income } & \mathbf { \$ 3 9 0 } \\\hline & \\\hline \text { Balance sheet data: } & \\\hline \text { Average total equity } & \mathbf { \$ 2 , 4 0 0 } \\\hline \text { Average total assets } & \mathbf { \$ 4 , 0 0 0 } \\\hline\end{array}\\\\\begin{array} { | l | r | } \hline \text { Income statement data: } & \\\hline \text { Sales } & \$ 1,230 \\\hline \text { Cost of goods sold } & 520 \\\hline \text { Operating expenses } & 440 \\\hline \text { Profit } & \$ 390 \\\hline & \\\hline \text { Balance sheet data: } & \\\hline \text { Average total equity } & \$ 2,400 \\\hline \text { Average total assets } & \$ 4,000 \\\hline\end{array}\end{array}$$
Per share data (these amounts stated in actual dollars, not millions) :
Supreme reported earnings per share for the year of $4 and paid cash dividends of $1 per share. At year end, the Wall Street Journal listed Supreme's shares as trading at $88 per share.
-Refer to the above data. What was Supreme's operating profit? (in millions) :

• A) $710.
• B) $390.
• C) $270.
• D) Some other amount.

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Definitions:

Beta Oxidation

A metabolic process in which fatty acid molecules are broken down in the mitochondria to generate acetyl-CoA, which enters the citric acid cycle to produce energy.

Fatty Acids

Long hydrocarbon chains that are a vital component of lipids and play an essential role in energy storage and cell structure.

Catabolized

The process by which substances are broken down into smaller molecules to release energy.

Ketogenesis

A metabolic process where the liver produces ketone bodies from fatty acids, which serve as an alternative energy source when glucose is low.