QRS Inc. projects that its sales for 2013 will be 37,000,000 and its gross profit margin will be 21%. Operating expenses are projected to be 4,810,000 which includes depreciation expenses of 1,443,000. QRS has a total asset tunover of 1.50 and a debt ratio of 40%. QRS pays an average interest rate of 7% on borrowed money and has a 40% income tax rate.
a. What is QRS's cost of goods sold for the year?
b. How much interest will QRS pay during 2013?
c. What is QRS's return on assets for 2013?
d. What is QRS's Operating cash flow for 2013?
e. What is QRS's projected return on equity for 2013?
f. If QRS's depreciation expense was double for 2013, what would be its new return on equity?