Mercedes, Co has the following quarterty financial inforrnation. Cast of goods s
ID: 2433157 • Letter: M
Question
Mercedes, Co has the following quarterty financial inforrnation. Cast of goods sold Interest expense Average number of common shares Stock price when Q4 EPS released 939,800 3049,300 $947,800 $055,400 306.400 319.000 318,600323,800 240,000201.000 259,200283,300 4,5604,5504,550 4450 88.20089,100 8,100 91,600 802,530797,504 709,170 812.500 $24 a. Calculate the gross proft percentage for each quarter. (Do not round your intermediate calculations and round your final answer to 2 deciemal places) b. Calou/ate the net proft margin for each quarter, (Do not round your intermediate calculations and round your final answer to 2 decimal places.) Net Proft Margin c. Caluiste the EPS tor each quarter (Do not round your interinediate calculations and round your final answor to 2 decimal places) EPS d. Calourse ijn. PreeEarnings r calculations and round your final answer to 2 diecimal places) are at the end of the year (Do not round your intermediate O Type here to searchExplanation / Answer
a. Gross profit percentage=(Gross profit/Sales)*100 Gross profit=Sales-Cost of goods sold Q4 Q3 Q2 Q1 Sales revenue (a) 939800 949300 947600 955400 Less: Cost of goods sold 306400 319000 318600 323800 Gross profit (b) 633400 630300 629000 631600 Gross profit percentage [(b)/(a)]*100 67.40% 66.40% 66.38% 66.11% b. Net profit margin=(Net profit/Sales revenue)*100 Q4 Q3 Q2 Q1 Gross profit 633400 630300 629000 631600 Less: expenses Operating expenses 249600 261000 259200 263300 Interest expense 4550 4550 4550 4550 Income tax expense 86200 89100 89100 91600 Total expenses 340350 354650 352850 359450 Net profit 293050 275650 276150 272150 Net profit margin 46.27% 43.73% 43.90% 43.09% c. EPS =Net profit/Average number of common shares outstanding Q4 Q3 Q2 Q1 Net profit 293050 275650 276150 272150 Average number of common shares outstanding 802530 797564 799170 812500 EPS 0.37 0.35 0.35 0.33 d. Price earning ratio=Stock price/EPS EPS =Net profit/Average number of common shares outstanding Q4 Q3 Q2 Q1 Year end Stock price 24 Net profit 293050 275650 276150 272150 1117000 Average number of common shares outstanding 802530 EPS 1.39 Price earning ratio 17.24