Problem:
2005 2006
Sales 550,000 585,000
Cost of Goods Sold 315,000 335,000
Operating Margin 235,000 250,000
Selling, General and Administrative Expenses 85,000 83,000
Depreciation and Amortization of Goodwill 58,000 55,000
Interest Expense 42,000 41,250
Gross Profit 50,000 70,750
Taxes 7,500 12,735
Net Income (earnings) 42,500 58,015
What is the growth rate of sales?
As a % of Sales, what change did SG&A achieve?
Did the firm change tax brackets from year to year?
What is the best net profit margin for the firm?