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Suppose you are analyzing the financial statements of Company XYZ, a multinational corporation operating in the technology sector. The company's income statement for the fiscal
Suppose you are analyzing the financial statements of Company XYZ, a multinational corporation operating in the technology sector. The company's income statement for the fiscal year ending December 31, 2023, is as follows:
- Total Revenue: $10,000,000
- Cost of Goods Sold (COGS): $3,500,000
- Selling, General, and Administrative Expenses (SG&A): $2,000,000
- Depreciation and Amortization: $500,000
- Interest Expense: $300,000
- Tax Expense: $800,000
Additionally, you have the balance sheet information for the same period:
- Cash and Cash Equivalents: $1,200,000
- Accounts Receivable: $1,500,000
- Inventory: $2,000,000
- Property, Plant, and Equipment (PP&E): $5,000,000
- Accumulated Depreciation: $1,500,000
- Accounts Payable: $1,000,000
- Long-term Debt: $3,000,000
- Common Stock: $2,000,000
- Retained Earnings: $3,700,000
Using this information, calculate the following financial ratios for Company XYZ:
- Gross Profit Margin
- Operating Profit Margin
- Net Profit Margin
- Return on Assets (ROA)
- Return on Equity (ROE)
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