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Use the following information to answer the questions: Assets Liabilities and Equity Cash 12,000 Accounts payable 19,000 Marketable securities 2,000 Notes payable 6,000 Accounts receivable

Use the following information to answer the questions:

Assets Liabilities and Equity
Cash 12,000 Accounts payable 19,000
Marketable securities 2,000 Notes payable 6,000
Accounts receivable 7,000 Current liabilities 25,000
Inventory 42,000 Long-term debt 95,000
Current assets 63,000 Total liabilities 120,000
Machines 34,000 Paid-in capital 20,000
Real estate 80,000 Retained earnings 37,000
Fixed assets 114,000 Total equity 57,000
Total assets 177,000 Total liab. & equity 177,000

Line item Value
Sales 72,000
- Operating expenses 59,040
- Depreciation 2,000
= EBIT 10,960
- Interest 800
= Taxable income 10,160
- Taxes (33%) 3,353
= Net income 6,807

Part 1: What is the operating margin? Part 2: What is the profit margin (aka net profit margin)? Part 3: What is the return on assets (aka return on total assets)? Part 4: What is the return on equity (aka return on common equity)? Part 5: What is the return on invested capital?

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