• Kappa Retail reports the following financial data:
  • Revenue: $1,000,000
  • Cost of goods sold: $400,000
  • Selling and administrative expenses: $200,000
  • Interest expenses: $50,000
  • Tax rate: 25%

• Requirements:
  1. Calculate Kappa Retail's operating income.
  2. Determine the net income.
  3. Calculate the operating profit margin.
  4. Analyze the net profit margin.
  5. Determine the return on equity (ROE).