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Ford Motor Company, a renowned automobile manufacturer, discloses the following financial information for the fiscal year ending December 31, 20XX: Total revenue: $150 billion Cost

  1. Ford Motor Company, a renowned automobile manufacturer, discloses the following financial information for the fiscal year ending December 31, 20XX:
    • Total revenue: $150 billion
    • Cost of goods sold: $120 billion
    • Research and development expenses: $5 billion
    • Selling and administrative expenses: $10 billion
    • Earnings before interest and taxes (EBIT): $15 billion
    • Interest expense: $3 billion
    • Income tax expense: $2 billion

Compute the following profitability and efficiency ratios for Ford Motor Company:

a) Gross profit margin b) Operating profit margin c) Return on assets (ROA) d) Asset turnover ratio

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