Using the indirect method

1,629,000- 1,035,000= 594000

YEAR 2

Year 2

1435000/752000 = 1.91

1435000 – 5000 – 860000/ 752000 = 0.76

4. Accounts Receivables Turnover = Sales account/ Average Accounts receivable

365/ 3.23 = 113.00

6. Inventory Turnover Ratio = Cost of goods sold/ Average inventory balance

1. Return on Total Assets = [Net income + [Interest expense*(1- tax)/ Average Total assets] *100

170000(1- .32)/ 3911500 = 0.03*100 = 3%

170000/2000000*100 = 8.5%

4. Gross profit margin = [Gross profit/ Revenue] *100