Reference no: EM132715649

Question 1: Aurora Lighting Ltdhas the following income statement items: sales of $12000 000; operating expenses of $1500 000; cost of goods sold of $4000 000; and interest expense of $50 000.

Required:

a. Calculate the firm's gross profit margin of the company?

b. Calculate EBIT of the company?

c. Calculate Net Income of the company given the company's marginal tax rate of 25%

Question 2: New Age ITSolutions had net profitmargin of 0.35on sales of $5000000 during 2020. In addition, the firm's total assets were $4500000, and its capital structure is comprised of 35% debt and 65% equity.

Required:

a.What wasNew Age IT Solutions'return on equity in 2020?

b.What was ROA of the company in 2020?

c.Calculate EPS and PE of the company if it has total shares outstanding of 50,000 with a market price of $85 per share?

Question 3. Thetable below shows accounting data of ABC company as of 30 June 2020. From the data, establish an income statement and a balance sheetfor the company.Note: Company income tax 30%, during the accounting period companies has paid 5% of interest on the mortgage. Profit is retained for further investment