Question
BCD Inc., a food processing company, reports the following data for the year ended December 31, 2022: Sales Revenue: $6,000,000 Cost of Goods Sold: $3,800,000
BCD Inc., a food processing company, reports the following data for the year ended December 31, 2022:
Sales Revenue: $6,000,000
Cost of Goods Sold: $3,800,000
Operating Expenses: $1,500,000
Depreciation Expense: $400,000
Interest Expense: $150,000
Income Tax Expense: $200,000
Current Assets: $2,500,000
Current Liabilities: $1,200,000
Total Liabilities: $3,000,000
Total Equity: $4,000,000
Requirements:
Prepare an income statement for BCD Inc. for the year ended December 31, 2022.
Calculate the gross profit margin.
Determine the net profit margin.
Compute the current ratio.
Calculate the return on equity (ROE).
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