Question
Mercedes, Co. has the following quarterly financial information. 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter...
Mercedes, Co. has the following quarterly financial
information.
| 4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | |||||||||
| Sales revenue | $ | 947,800 | $ | 957,300 | $ | 955,600 | $ | 963,400 | ||||
| Cost of goods sold | 306,800 | 319,400 | 319,000 | 324,200 | ||||||||
| Operating expenses | 250,000 | 261,400 | 259,600 | 263,700 | ||||||||
| Interest expense | 4,750 | 4,750 | 4,750 | 4,650 | ||||||||
| Income tax expense | 86,600 | 89,500 | 89,500 | 92,000 | ||||||||
| Average number of common shares outstanding | 804,530 | 799,564 | 801,170 | 814,500 | ||||||||
| Stock price when Q4 EPS released | $ | 24 | ||||||||||
a. Calculate the gross profit percentage for each
quarter. (Enter your percentage answer to 2 decimal places
(i.e., enter 0.1234 as 12.34.))
b. Calculate the net profit margin for each
quarter. (Enter your percentage answer to 2 decimal places
(i.e., enter 0.1234 as 12.34.))
c. Calculate the EPS for each quarter. (Do
not round your intermediate calculations and round your final
answer to 2 decimal places.)
d. Calculate the Price/Earnings ratio at the end
of the year. (Do not round your intermediate calculations
and round your final answer to 2 decimal
places.)
Homework Answers
Answer #1
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