Return on Assets Net Sales Gross Profit Margin Cost of Goods Operating Net Profit Before Tax PI Expense Accounts Receivable Return On Assets + Merchandise Inventory Total Current Assets Asset Turnover Cash Total Assets Fixed Assets Other Current Assets Use the charts on the following page to calculate Net Profit Margin % for each scenario: Scenario 1 Scenario 2 Income Statement Income Statement Sales Sales Gross Sales $200,000 Gross Sales $100,000 Promotional Allowances $25,000 Promotional Allowances $15,000 Customer Returns -$15,000 Customer Returns $10,000 Total Net Sales $210,000 Total Net Sales $105,000 Cost of Goods Sold Cost of Goods Sold COGS $150,000 COGS $60,000 Total COGS $150,000 Total COGS $60,000 Gross Margin $60,000 Gross Margin $45,000 Expenses Expenses Selling, General & Administrative $35,000 Selling, General & Administrative $20,000 Financing $1,200 Financing $700 Total Expenses $36,200 Total Expenses $20,700 Net Profit Before Tax (EBT) $23,800 Net Profit Before Tax (EBT) $24,300 Tax Rate 30% $7,140 Tax Rate 30% $7,290 Total Taxes $7,140 Total Taxes $7,290 Net Profit After Tax $16,660 Net Profit After Tax $17,010 Scenario 1 110,000 loco 350 7,140 Return On Assets Merchandise Total Current Total Assets Fixed Assets Other Curren Scenario 2 Accounts Receivable Net Return On Assets Sales Merchandise Inventory Total Current Assets Turnover Cash Total Assets Fixed Assets Other Current Assets