Reference no: EM133178296

Question - In 2018, MA Ltd. had the following financial data:

Sales 12,000,000,000

Cost of Goods Sold 10,200,000,000

Operating Expenses 360,000,000

Depreciation Expenses 400,000,000

Interest Expense 180,000,000

Taxes 220,000,000

Current Assets 2,800,000,000

Fixed Assets 5,200,000,000

In 2019 management projects an increase in total assets of 15% from 2018. Also the Total Assets Turn Over in 2019 will be 1.8 times. Changes in these numbers will cause changes in sales and cost figures. Total costs in 2019 will increase by 900,000,000 from the total costs in 2018.

Required -

a. Calculate Net Profit Margin, Total Assets Turn Over and Return on Assets in 2018.

b. Calculate the projected Net Profit Margin and Return on Assets in 2019.