Question 6

LMN Trading Company has provided the following financial information:

• Total Revenue: $10,000,000
• Cost of Goods Sold: $6,000,000
• Operating Expenses: $2,500,000
• Depreciation Expense: $300,000
• Interest Expense: $200,000
• Taxes: $500,000
• Net Income: $500,000
• Total Assets: $8,000,000
• Total Equity: $4,000,000

Requirements:

• Calculate the Gross Profit Margin.
• Determine the Operating Profit Margin.
• Calculate the EBITDA.
• Determine the Debt to Assets Ratio.
• Calculate the Return on Equity (ROE).