1. Alpha Manufacturing

Scenario: Financial Statement Analysis

Data: Alpha Manufacturing reported the following financial information for the year 2023:

• Sales Revenue: $5,000,000
• Cost of Goods Sold: $3,000,000
• Operating Expenses: $800,000
• Interest Expense: $50,000
• Income Tax Expense: $200,000
• Net Income: $950,000

Requirements: Calculate Alpha Manufacturing's gross profit margin, operating profit margin, and net profit margin. Analyze the company's profitability ratios and discuss their implications for financial performance. Evaluate Alpha Manufacturing's cost structure and efficiency based on the financial ratios. Recommend strategies to improve profitability and cost management.