Solution for QID #46148: Question 1)Aurora Lighting Ltdhas the following income state | StudyHelpMe

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