As an outside analyst, what questions would you want to ask Amerbran’s management based on the ratios you have calculated?
AMERBRAN COMPANY (B)
Exhibit 1. Income Statement
For the Year Ended December 31, 2003
(in thousands)
Sales revenue, net $6,577,480
Less: Cost of sales 2,573,350
Excise taxes on goods sold 2,354,350
Gross margin 1,649,780
Selling, general, and administrative expenses 974,121
Income before income taxes 675,659
Provision for income taxes 296,877
Net income $378,782