Margin Calculations Use the following income statement for Paul Bunyan Lumber Co. to calculate gross and operating margins.
|
Paul Bunyan Lumber 2008 Income Statement |
|
|
Net sales |
$8,000 |
|
Cost of goods sold |
6,400 |
|
Gross profit |
$1,600 |
|
Operating expenses |
400 |
|
Operating income |
$1,200 |
|
Other income |
80 |
|
Net interest expense |
120 |
|
Pretax income |
$1,160 |
|
Income tax |
464 |
|
Net income |
$696 |
|
Earnings per share |
$3.48 |
|
Recent share price |
$76.56 |