Question 1: (30 marks)

XYZ Corporation has the following financial information:

Sales = $8 million

Net Profit = $0.64 million

Current Assets = $2 million,

Fixed Asset = $6 million

Net Working Capital = $1 million,

Long-Term Debt = $3 million

Required:

1.	What is the objective of Profit Margin? Compute Profit Margin.	(5 marks)
2.	What is the objective of Total Asset Turnover? Compute Total Asset Turnover.	(8 marks)
3.	What is the objective of Equity Multiplier? Compute Equity Multiplier.	(12 marks)
4.	What is the objective of Return on Equity? Compute Return on Equity.	(5 marks)