Question
Financial Statement Analysis The following data is provided for Company XYZ for the year 2023: Total Revenue: $2,000,000 Cost of Goods Sold: $1,200,000 Operating Expenses:
Financial Statement Analysis
The following data is provided for Company XYZ for the year 2023:
- Total Revenue: $2,000,000
- Cost of Goods Sold: $1,200,000
- Operating Expenses: $500,000
- Interest Expenses: $50,000
- Tax Rate: 30%
- Total Assets: $3,000,000
- Total Liabilities: $1,800,000
Requirements: (a) Prepare the Income Statement. (b) Calculate the Net Profit Margin. (c) Calculate the Return on Assets (ROA). (d) Calculate the Return on Equity (ROE). (e) Assess the company’s financial health based on the calculated ratios.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
