Question 7:

Examine the financial details of PQR Enterprises:

• Sales: $400,000
• Cost of Sales: $240,000
• Selling and Administrative Expenses: $100,000
• Interest Expense: $12,000
• Tax Rate: 20%
• Total Assets: $300,000
• Shareholders’ Equity: $180,000

1. Compute the Gross Profit Margin.
2. Determine the Operating Profit Margin.
3. Calculate the Net Profit Margin.
4. Calculate the Return on Assets (ROA).
5. Compute the Return on Equity (ROE).