Calculate gross margin (%) Calculate operating margin (EBIT = Operating Profit) (%) a- Calculate Pre-tax (PBT) margin (%) b- Calculate Net Margin (PAT is Net Income) (%) Given New Chip’s LTD of $179 million at 12/31/22, what was its cash flow financial leverage using the ratio LTD ÷ EBITDA? (x)

Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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  1. Calculate gross margin (%)

Calculate operating margin (EBIT = Operating Profit) (%)

a- Calculate Pre-tax (PBT) margin (%)

b- Calculate Net Margin (PAT is Net Income) (%)

Given New Chip’s LTD of $179 million at 12/31/22, what was its cash flow financial leverage using the ratio LTD ÷ EBITDA? (x)

Sales (net)
CofGS
Gross profit
Other expense
Depr&Amort
Lease expense
EBIT
Interest expense
PBT
Tax @ 26%
PAT
New Chip Corp Income Statement for 2022
($ in Millions)
504
352
152
89
21
10
32
11
21
5
16
Transcribed Image Text:Sales (net) CofGS Gross profit Other expense Depr&Amort Lease expense EBIT Interest expense PBT Tax @ 26% PAT New Chip Corp Income Statement for 2022 ($ in Millions) 504 352 152 89 21 10 32 11 21 5 16
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