Question 6 ( 7 marks)

You are working as the finance manager for SamCo Ltd. The following data is available for the company as of 31 June 2021:

Sales	$2,586,500
Cost of goods sold	752,000
Wages and salary	125,750
Selling Expenses	45,300
Insurance expense	2,500
Utilities	12,500
Interest payment	48,050
Depreciation Expense	32,000
Corporate Tax	30%

Required:

1. Calculate operating profit, tax payment and build an income statement for the company? (3 marks)
2. The company's Management Board required you to prepare a report about capital structure of the company. Name at least 4 financial ratios and their formulas, of which you need to discuss about financial leverage of the company in the report? (1 mark)
3. Calculate the net profit margin (NPM) and total assets of the company given total assets turnover is 1.3. (2 marks)
4. Calculate accounts receivable turnover of the company, given average accounts receivable is $98,000, assuming all sales are on credit? (1 mark)