A company has the following information for the year ended December 31, 2022: Sales revenue: $500,000 Cost
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Question:
A company has the following information for the year ended December 31, 2022:
- Sales revenue: $500,000
- Cost of goods sold: $300,000
- Gross profit: $200,000
- Operating expenses: $100,000
- Net income before tax: $100,000
- Income tax expense: $20,000
- Net income after tax: $80,000
- Average total assets: $500,000
- Average total liabilities: $200,000
- Average common stock equity: $300,000
Using the information above, calculate the following ratios for the company:
- Gross profit margin
- Net profit margin
- Return on assets (ROA)
- Return on equity (ROE)
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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