Question: Question 10: NOP Ltd. Profitability Analysis Income Statement Data (in thousands) Total Revenue: $600 Total Expenses: $450 Net Income: $150 Total Assets: $1,000 Shareholders' Equity:

Question 10:

NOP Ltd. Profitability Analysis

Income Statement Data (in thousands)

  • Total Revenue: $600
  • Total Expenses: $450
  • Net Income: $150
  • Total Assets: $1,000
  • Shareholders' Equity: $600

Requirements:

  1. Calculate the Profit Margin.
  2. Determine the Return on Assets (ROA).
  3. Calculate the Return on Equity (ROE).
  4. Analyze the company’s profitability.


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Question 1

In the fiscal year 2023, XYZ Manufacturing Company has provided the following financial data:

  • Sales Revenue: $2,000,000
  • Cost of Goods Sold: $1,200,000
  • Operating Expenses: $400,000
  • Interest Expense: $50,000
  • Tax Rate: 25%
  • Inventory: $300,000
  • Accounts Receivable: $250,000
  • Accounts Payable: $200,000
  • Total Assets: $2,500,000
  • Total Equity: $1,500,000

Requirements:

  1. Calculate the Gross Profit Margin.
  2. Calculate the Operating Profit Margin.
  3. Calculate the Net Profit Margin.
  4. Determine the Current Ratio.
  5. Determine the Debt to Equity Ratio.

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