Question 4

GHI Enterprises has the following income statement data for the year 2023:

• Revenue: $3,500,000
• Cost of Goods Sold: $2,100,000
• Gross Profit: $1,400,000
• Operating Expenses: $800,000
• Operating Income: $600,000
• Interest Expense: $50,000
• Income Before Taxes: $550,000
• Income Tax Expense: $137,500
• Net Income: $412,500

Requirements:

• Calculate the Gross Profit Margin.
• Calculate the Operating Profit Margin.
• Determine the Net Profit Margin.
• Calculate the Return on Assets (ROA) given Total Assets of $2,500,000.
• Determine the Return on Equity (ROE) given Total Equity of $1,800,000.