Problem:
Use the following information on Firm A and B to answer the questions 1, 2, and 3.
Firm A Firm B
Revenue 230,000 390,000
COGS 92,000 175,500
Operating Expenses 120,000 150,000
Net Income 6,300 22,575
Total Assests 50,000 215,000
Equity 20,000 150,000
Required:
Question 1: Calculate the Gross Profit (in dollars) and Gross Profit Margin (%) for A and B.
Question 2: Calculate EBIT (in dollars) and Operating Profit Margin (%) for A and B.
Question 3: Calculate ROA (%) and ROE (%) for A and B (using assets and equity provided).
Note: Please show guided help with steps and answer.