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Problem #2 Use the following information to calculate the requested Income Statement metrics. Net Farm Income $36,000 Opportu

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Answer #1

A) Rate of return on assets = Net profit / total assets

=  36000/360000 = 10%

B) Rate of return on equity = Net income / shareholders fund

= 36000/220000 = 16.36%

C) Operating profit margin ration= Net income / total Revenues

= 36000/109500 = 32.88%

D) Change in equity = Opening equity + net profit - dividends

= 220000+36000-0 = 256000

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