Question: How did we find the return on total capital explain step by step Question 9: Ratio analysis Great World Trading Limited, a company listed on
How did we find the return on total capital explain step by step Question 9: Ratio analysis Great World Trading Limited, a company listed on the Unintelligent Stock Exchange, is a trading and investment entity. The c firms. You are considering investing into Great World Trading Limited. The company has provided you the tinancial statements (i.e., income statement and balance sheet) for 2027 and 2028. Income Statement December 31, 2027 December 31, 2028 Sales Revenue Cost of Goods Sold Gross Profit $201,561,025.00 $94,972,000.00 $106,589,025.00 $212,500,000.00 $99,752,000.00 $112,748,000.00 Selling and Distribution Expenses Administrative Expenses Other Income Gain (Loss) on Sale of Land Gain (Loss) Sale of Equipment Impairment Loss Operating Profit -$41,598,000.00 $24,001,000.00 $5,605,000.00 -$2,580,010.00 S6,842,510.00 -$1,400,000.00 $49,457,525.00 -$48,175,000.00 -$25,089,000.00 $10,578,000.00 -$15,824,500.00 $4,589,200.00 -$2,000,000.00 $36,826,700.00 $2,453,000.00 -$19,890,000.00 -$12,437,000.00 $6,505,000.00 Finance Income Finance Costs $8,540,000.00 -$7,035,000.00 Finance Costs (Net) Share of Net Gain (Loss) from Associates Share of Net Gain (Loss) from Joint Venture S4,287,000.00 $6,542,000.00 $5,891,000.00 $25,069,000.00 Profit Before Income Tax Income Tax Net Income $57,802,525.00 $14,450,631.25 $43,351,893.75 $30,442,700.00 $7,610,675.00 $22,832,025.00
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