Question 9

TUV Enterprises has the following income statement information for the year 2023:

• Sales: $15,000,000
• Cost of Goods Sold: $9,000,000
• Gross Profit: $6,000,000
• Operating Expenses: $3,500,000
• Operating Income: $2,500,000
• Interest Expense: $200,000
• Tax Expense: $700,000
• Net Income: $1,600,000

Requirements:

• Calculate the Gross Profit Margin.
• Determine the Operating Profit Margin.
• Calculate the Net Profit Margin.
• Calculate the Return on Assets (ROA) given Total Assets of $12,000,000.
• Determine the Return on Equity (ROE) given Total Equity of $7,500,000.