Siskiyou Inc. has total current assests of 1,200,000; total current liabilities
ID: 2641409 • Letter: S
Question
Siskiyou Inc. has total current assests of 1,200,000; total current liabilities of $500,000; and long-term assests of $800,000. How much is the firm's Total Liabilities & Equity?
a) 2,000,000
b) 1,800,000
c) 2,500,000
d) 1,300,000
Rogue Industries reported the following items for the current year. Sales=$300,000;Cost of Goods Sold =$1,500,000;DepreciationExpense=$170,000;Administrative expenses =$150,000;Interest Expense=$30,000;Marketing expenses=$80,000; and Taxes=$300,000;Rogues operating profit margin is equal to
a) 35.67%
b)50.00%
c)25.67%
d)36.67%
Please show how you got these calculatons so that I can learn how to correctly do similar problems to theses
Explanation / Answer
1)
total liabilities and equity = total current assets + long term assests
= 1200000 + 800000
= 2,000,000
hence the correct choice is a)
2)
operating income (EBIT) = sales - cost of goods sold - Depriciation expense - administrative expenses -marketing expenses
= 3000000 - 1500000 - 170000 - 150000 - 30000 - 80000
= 1,100,000
operating profit margin = operating income / sales * 100%
= 1100000/3000000 * 100%
= 36.67%
hence the correct choice is d)