Question 1) Aurora Lighting Ltdhas the following income statement items: sales of $12000 000; operating expenses of $1500 000; cost of goods sold of $4000 000; and interest expense of $50 000

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Question 1) Aurora Lighting Ltdhas the following income statement items: sales of $12000 000; operating expenses of $1500 000; cost of goods sold of $4000 000; and interest expense of $50 000.

Required:

a. Calculate the firm's gross profit margin of the company?

b. Calculate EBIT of the company?

c. Calculate Net Income of the company given the company's marginal tax rate of 25%

Question 2: New Age ITSolutions had net profitmargin of 0.35on sales of $5000000 during 2020. In addition, the firm's total assets were $4500000, and its capital structure is comprised of 35% debt and 65% equity.

Required:

a.What was New Age IT Solutions' return on equity in 2020?

b.What was ROA of the company in 2020?

c.Calculate EPS and PE of the company if it has total shares outstanding of 50,000 with a market price of $85 per share?

Question 3. The table below shows accounting data of ABC company as of 30 June 2020. From the data, establish an income statement and a balance sheet for the company.Note: Company income tax 30%, during the accounting period companies has paid 5% of interest on the mortgage. Profit is retained for further investment

Administration expense	23,000
Sales	892,000
Insurance Expenses	5,500
Cash	74,000
Bills Receivable	45,000
Cost of goods sold	342,000
Equipment	42,000
Electricity and telephone expense	7,840
Accounts payable	42,050
Inventory	43,500
Wages and salaries	62,500
Land and buildings	425,000
Short term bank loans	45,000
Prepaid by a client for the company service	16,500
Vehicles	54,000
Mortgage	450,000
Prepaid rent	25,000
Supplies	43,000
Account receivables	172,000