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LMN Co. has the following financial data: Income Statement for the Year Ended December 31, 2023 Sales Revenue: $2,000,000 Cost of Goods Sold: $1,200,000 Gross
LMN Co. has the following financial data:
Income Statement for the Year Ended December 31, 2023
- Sales Revenue: $2,000,000
- Cost of Goods Sold: $1,200,000
- Gross Profit: $800,000
- Selling and Administrative Expenses: $300,000
- Depreciation Expense: $100,000
- Operating Income: $400,000
- Interest Expense: $50,000
- Tax Expense: $100,000
- Net Income: $250,000
Balance Sheet as of December 31, 2023
- Assets:
- Cash: $100,000
- Accounts Receivable: $300,000
- Inventory: $250,000
- Property, Plant, and Equipment (Net): $600,000
- Total Assets: $1,250,000
- Liabilities and Equity:
- Accounts Payable: $150,000
- Notes Payable: $200,000
- Long-term Debt: $300,000
- Total Liabilities: $650,000
- Equity:
- Common Stock: $400,000
- Retained Earnings: $200,000
- Total Equity: $600,000
Required:
- Calculate the ROI for LMN Co.
- Determine the inventory turnover ratio.
- Find the net profit margin.
- Calculate the current ratio.
- Compute the equity ratio.
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