Using the financial statement of ABC Pty Ltd, Calculate the:

i. Net profit margin 

ii. Total asset turnover

iii. Financial leverage multiplier

iv. Return on total assets

v. Return on common equity

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Sales - Costs and expenses @ 90% Earnings before interest & taxes - Interest (.10*$1,000,000) Earnings before taxes Taxes @ 40% Net income Assets ABC Pty Ltd Statement of Profit or Loss For the Year Ended 30 June 2021 Current assets Fixed assets Total assets $ ABC Pty Ltd Statement of Financial Position as of 30 June 2021 0 2,000,000 $2,000,000 $4,000,000 3,600,000 $ 400,000 100,000 $ 300,000 120,000 $ 180,000 Liabilities and Shareholders' Equity Current liabilities $ Long-term debt @ 10% Total liabilities Ordinary share equity Total liabilities and shareholders' equity 0 1,000,000 $1,000,000 1,000,000 $2,000,000 Sales - Costs and expenses @ 90% Earnings before interest & taxes - Interest (.10*$1,000,000) Earnings before taxes Taxes @ 40% Net income Assets ABC Pty Ltd Statement of Profit or Loss For the Year Ended 30 June 2021 Current assets Fixed assets Total assets $ ABC Pty Ltd Statement of Financial Position as of 30 June 2021 0 2,000,000 $2,000,000 $4,000,000 3,600,000 $ 400,000 100,000 $ 300,000 120,000 $ 180,000 Liabilities and Shareholders' Equity Current liabilities $ Long-term debt @ 10% Total liabilities Ordinary share equity Total liabilities and shareholders' equity 0 1,000,000 $1,000,000 1,000,000 $2,000,000

Answer rating: 100% (QA)

i Net profit margin Net Income Sales ie 180000 4000000 45 ii Total asset tu... View the full answer