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.)

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