The Following Income Statement Was Reported for Bauer Inc

question 111

Essay

The following income statement was reported for Bauer Inc. for the first year of operations ending December 31, 2016 reported (in thousands of dollars): Requirement:
A.Calculate gross profit percentage.
B.Calculate net profit margin.
C.Calculate earnings per share if there are 200,000 shares of common stock outstanding.

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Definitions:

Operating Expenses

The costs associated with the day-to-day operations of a business, not including the cost of goods sold.

Fixed Assets

Long-term tangible assets used in the operations of a business that are not expected to be consumed or converted into cash within a year.

Trademark

A trademark is a recognizable sign, design, or expression which identifies products or services of a particular source from those of others.

Patent

Legal protection granted by the government to an inventor, giving them exclusive rights to use, produce, and sell their invention for a certain period of time.