PNY Corporation is a manufacturer of financial calculators. The sales for the year amounted to R10 000 000. Cost of sales is calculated at 25% of sales. The Corporation is subject to a 28% rate and at the year-end decided to declare 10% in dividends.

Additional information: PNY Corporation borrowed R100 000 at 25% per annum.

Statement of Financial position at 31 December 20XX

Fixed assets R10 000 000 Ordinary shares R 2 000 000 Cash R 100 000 Long-term debt R 4 000 000 Accounts receivable R 500 000 Short-term loans R 100 000 Inventory R 600 000 Accounts payable R 1 552 200.

Question

1. Calculate net profit before tax.
2. Calculate ROI
3. Calculate tax payable