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.
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Calculate Gross Profit: \[ \text{Gross Profit} = \text{Sales} - \text{Cost of Goods Sold (COGS)} \] \[ \text{Gross Profit} = 910,375.00 - 392,405.00 = 517,970.00 \]
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Calculate Operating Income: Operating income is calculated by subtracting selling and administrative expenses and depreciation/amortization from gross profit: \[ \text{Operating Income} = \text{Gross Profit} - \text{Selling and Administrative Expenses} - \text{Depreciation and Amortization} \] \[ \text{Operating Income} = 517,970.00 - 96,385.00 - 53,180.00 \] \[ \text{Operating Income} = 368,405.00 \]
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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!
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