1) XYZ Corp. has reported financial results for year-end 2006. Based on following information, compute firm's gross profit margin and operating profit margin.
Net sales = $4,156,700 Net income = $778,321
Cost of goods sold = $2,715,334 EBIT = $1,356,098
a.34.7%; 32.6%
b.32.6%; 18.72%
c.34.7%; 18.72%
d.None of the above
2) Sunshine Corp has debt of= $2,834,950, total assets of= $5,178,235, sales of= $8,234,121, and net income of= $812,355. Determine firm's return on equity?
a. 7.1%
b. 34.7%
c. 28.1%
d. 43.2%