| Sales Rs. 80,000,000 |
| Gross Profit Margin 80% |
| Operating Profit Margin 35% |
| Net Profit Margin 8% |
| Return on Total Assets 16% |
| Return on common equity 20% |
| Total assets Turnover 2 |
| Average collection Period 70 Years |
| Gross Profit Margin Ratio = (Revenue -Cost of Goods Sold)/Revenue |
| 0.8 = (80,000,000 - CGS)/80,000,000 |
| 0.8*80,000,000 = 80,000,000 - CGS |
| 64,000,000 = 80,000,000 - CGS |
| Cost of Goods Sold = 80,000,000 - 64,000,000 |
| Cost of Goods Sold = 16,000,000 |
| Gross Profit = Sale - Cost of Goods Sold |
| Gross Profit = 80,000,000 - 16,000,000 |
| Gross Profit = 64,000,000 |
| Operating Profit Margin = Operating Income/ Revenue |
| 0.35 * 80,000,000 = Operating Income |
| Operating Income = 28,000,000 |
| Operating Expense = Gross Profit - Operating Income |
| Operating Expense = 64,000,000 - 28,000,000 |
| Operating Expenses = 36,000,000 |
| Net Profit Margin = Net Profit ( After Tax)/Revenue * 100 |
| 8/100*80,000,000 = Net Profit(After Tax) |
| Net Profit(After Tax) = 6,400,000 |
| Earnings Available for common stockholders = Net Profit(After Tax = 6,400,000 |
| Return on Assets - Net Income/ Total Assets |
| 0.16 = 28,000,000/Total Assets |
| Operating Income is also called Net Income |
| Total Assets = 28,000,000/0.16 |
| Total Assets = 175,000,000 |
| Return on Common Equity = Net Income(After Tax)/Share Holder`s Equity |
| 0.20 = 6,400,000/ Share Holder`s Equity |
| Share Holder`s Equity = 6,400,000/0.2 |
| Share Holder`s Equity = 32,000,000 |
| Total Asset turnover = Sales/Average Total Assets |
| 2 = 80,000,000/Average Total Assets |
| Average Total Assets = 80,000,000/2 |
| Average Total Assets = 40,000,000 |
| Average Collection Period = (Days * Account Receivable)/Credit Sale |
| We assume Total Sale As Credit Sale |
| 7 Days = (360 * Account Receivable)/80,000,000 |
| 80,000,000 * 7 = 360 * Account Receivable |
| 80,000,000*7/360 = Account Receivable |
| Account Receivable = 1,555,555 |
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