XYZ Ltd. is a company that manufactures and sells electronic gadgets. For the year ended December 31,
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XYZ Ltd. is a company that manufactures and sells electronic gadgets. For the year ended December 31, 2022, the company has the following information:
Sales revenue: $2,000,000
Cost of goods sold: $1,200,000
Operating expenses: $500,000
Interest expense: $50,000
Income tax rate: 30%
a) Calculate the company's gross profit margin and net profit margin for the year 2022.
b) Calculate the company's earnings before interest and taxes (EBIT) and earnings after taxes (EAT) for the year 2022.
c) If the company's desired return on investment (ROI) is 15%, and the company's total assets are $3,000,000, what is the company's target net income for the year 2022?
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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