Question 5

JKL Tech Solutions reported the following for the year ending December 31, 2023:

• Net Sales: $8,000,000
• Cost of Goods Sold: $4,800,000
• Total Operating Expenses: $2,200,000
• Interest Expense: $150,000
• Net Income: $700,000
• Average Inventory: $600,000
• Total Assets: $5,000,000
• Total Equity: $3,000,000

Requirements:

• Calculate the Gross Profit.
• Determine the Operating Profit.
• Calculate the Net Profit Margin.
• Determine the Inventory Turnover Ratio.
• Calculate the Return on Assets (ROA).