Innovation Arch Company has this information:

Accounts receivable (starting)	$400
Advertising	$750
Cost of good sold	$5,875
Depreciation expense	$220
Insurance	$50
Interest	$210
Inventory (starting)	$1,300
Labor expense	$800
Loan principal payments	$400
Management compensation	$600
Miscellaneous expense	$300
Owner's equity	$1,800
Purchases of inventory	$6,200
Receipts on accounts receivable	$5,800
Rent	$400
Sales (cash)	$4,500
Sales (credit)	$5,500
Utilities	$180

Given the following, please calculate:

1. Gross Profit

2. Gross margin (percentage)

3. Total SG&A

4. EBITDA

5. Return on equity

6. Net Profit

7. Total net cash flow

8. Ending inventory

9. What would be the expected net profit, if Innovation Arch Company increased its advertising by eight percent (8%) and increased their total sales by one percent (1%)?

10. What would be the expected net profit, if Innovation Arch Company reduced price by five percent (5%) and got a twelve percent (12%) increase in total sales?