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  3. a). zelle corp. had a net profit margin of 5% last

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

?

?

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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