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A company has the following data for the year: Sales revenue: $1,000,000 Cost of goods sold: $600,000 Gross profit: $400,000 Operating expenses: $250,000 Net income:

A company has the following data for the year:

  • Sales revenue: $1,000,000
  • Cost of goods sold: $600,000
  • Gross profit: $400,000
  • Operating expenses: $250,000
  • Net income: $100,000

Calculate the following financial ratios for the company:

a) Gross profit margin b) Operating profit margin c) Net profit margin d) Return on assets e) Return on equity

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