questions for MRK

Q-4 Consider the financial information for Folger Corporation, a leading retailer. Table shows earnings for the company for 2019, as well as key balance statement figures from January 2020. Earnings and Expenses (in $ millions) Sales $50,000,000 Cost of goods sold (COGS) $30,000,000 Pre-tax Earnings $5,000,000 Selected Balance Sheet Items Merchandise inventory $2,500,000 Total Assets $8,000,000 With the preceding financial data, calculate some basic financial performance measurements for Folger Corporation. Calculate Profit margin: Explanation the answer: Calculate Return on assets (ROA) : (b). Consider Folger Corporation Could Cut its COGS by 14%, update earnings and expenses of Folger Corporation and explain the Financial Impact of Cost Savings in the Folger Corporation. Explain the Profit leverage effect by calculating: New Pre-tax Profit margin New Return on assets (ROA) %