Income Statement for Xenon Manufacturing: 2014 2015 ...
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Finance
Income Statement for Xenon Manufacturing:
2014
2015
Total sales
202
212
Cost of sales
-148
-172
Gross Profit
54
40
Selling, general, and administrative expenses
-22
-20
Research and development
-8
-7
Depreciation and amortization
-4
-3
Operating Income
20
10
Other income
4
6
Earnings before interest and taxes (EBIT)
24
16
Interest income (expense)
-7
-4
Pretax income
14
12
Taxes
-4
-3
Net Income
10
9
Consider the above Income Statement for Xenon Manufacturing. All values are in millions of dollars. Calculate the operating margin for 2014 and 2015. What does the change in the operating margin between these two years imply about the company?
Question 3 options:
The ability of Xenon Manufacturing to sell its goods and services for more than the costs of producing them rose between 2014 and 2015.
The leverage of Xenon Manufacturing fell slightly between 2014 and 2015.
The efficiency of Xenon Manufacturing has significantly risen between 2014 and 2015.
The efficiency of Xenon Manufacturing has significantly fallen between 2014 and 2015.
The revenues available to equity holders fell slightly between 2014 and 2015.
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