Question

A firm has sales of $910,375.00, cost of goods of $392,405.00, selling and administrative expense of $96,385.00 and depreciation and amortization expense of $53,180.00.

Answer 1

To analyze the firm's financial performance based on the provided figures, we can calculate a few key metrics: gross profit, operating income, and net income.

1. **Calculate Gross Profit:**
\[
\text{Gross Profit} = \text{Sales} - \text{Cost of Goods Sold (COGS)}
\]
\[
\text{Gross Profit} = 910,375.00 - 392,405.00 = 517,970.00
\]

2. **Calculate Operating Income:**
Operating income is calculated by subtracting selling and administrative expenses and depreciation/amortization from gross profit:
\[
\text{Operating Income} = \text{Gross Profit} - \text{Selling and Administrative Expenses} - \text{Depreciation and Amortization}
\]
\[
\text{Operating Income} = 517,970.00 - 96,385.00 - 53,180.00
\]
\[
\text{Operating Income} = 368,405.00
\]

3. **Net Income (assuming no other income/expense items or tax):**
If we assume that there are no other items that would influence net income (e.g., interest, taxes), then the operating income is also the net income:
\[
\text{Net Income} = \text{Operating Income} = 368,405.00
\]

### Summary of Results:
- **Sales:** $910,375.00
- **Cost of Goods Sold:** $392,405.00
- **Gross Profit:** $517,970.00
- **Selling and Administrative Expenses:** $96,385.00
- **Depreciation and Amortization Expense:** $53,180.00
- **Operating Income:** $368,405.00
- **Net Income:** $368,405.00 (assuming no other adjustments)

These calculations provide a basic overview of the firm's profitability. If you'd like to dive deeper into specific areas, please let me know!

Answer 2

What is the gross profit margin for the firm?

Answer 3

To calculate the Gross Profit Margin, you can use the following formula:

\[
\text{Gross Profit Margin} = \left( \frac{\text{Gross Profit}}{\text{Sales}} \right) \times 100
\]

From our previous calculations, we found:

- **Gross Profit:** $517,970.00
- **Sales:** $910,375.00

Now, plug these values into the formula:

\[
\text{Gross Profit Margin} = \left( \frac{517,970.00}{910,375.00} \right) \times 100
\]

Calculating the division first:

\[
\frac{517,970.00}{910,375.00} \approx 0.569
\]

Now, multiply by 100 to convert to a percentage:

\[
\text{Gross Profit Margin} \approx 0.569 \times 100 \approx 56.9\%
\]

### Summary:
The Gross Profit Margin for the firm is approximately **56.9%**.