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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:

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

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