a). Zelle Corp. had a net profit margin of 5% last year and an equity...
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Finance
a). Zelle Corp. had a net profit margin of 5% last year and an equity multiplier of 3.0. If its total assets are $100 million, what is the firm's return on equity?
b). Experts taken from the Financial Statements of Corporation for the years ended December 31, 2020 and December 31, 2021 are as follows:
2021
2020
Total Current Assets
$550,000
$710,000
Quick Assets
$300,000
$450,000
Total Assests
$920,000
$1,080,000
Total Current Liabilities
$383,000
$300,000
Total Debt
$790,000
$630,000
EBIT
S660,000
$875,000
Interest Expense
$40,700
$33,000
Net lncome
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i). Assuming a corporate tax rate of 30%. what is the Net Income of the company for both years?
ii). What is the Current Ratio and Acid Test Ratio of the company for both years?
iii). What is the Return on Assets for the company for both years?
iv). What is the Debt Ratio of the company for both years?
v). What is the TIE Ratio of the company for both years?
vi). Given the ratios calculated above, provide a brief analysis of your findings.
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