Question
YZ Inc., an information technology services company, provides the following financial information for the fiscal year ended September 30, 2023: Total Revenue: $8,000,000 Cost of
YZ Inc., an information technology services company, provides the following financial information for the fiscal year ended September 30, 2023:
Total Revenue: $8,000,000
Cost of Goods Sold: $4,800,000
Operating Expenses: $2,000,000
Depreciation Expense: $200,000
Interest Expense: $100,000
Income Tax Expense: $250,000
Cash and Cash Equivalents: $500,000
Accounts Receivable: $600,000
Inventory: $300,000
Total Current Liabilities: $1,000,000
Requirements:
Prepare an income statement for YZ Inc. for the fiscal year ended September 30, 2023.
Calculate the operating profit margin.
Determine the net income.
Compute the quick ratio.
Calculate the return on assets (ROA) assuming total assets of $5,000,000.
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