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Domino Corp

question 3

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Domino Corp.reported to its shareholders a before tax profit such that the ROA is 2.33% and the ROCE is 3.5% (both based on beginning balances) .The Return on sales is 8.75%.Gross margin is 40% and Sales General and Administrative expenses amount to 25% of sales.Long-term debts are bearing interest at the rate of 5% per year.The reimbursement of the principal will be in fine (i.e. ,a balloon payment at maturity) .Assume that sales revenue for the year was 100 CU.What was the capital structure in the beginning balance sheet?

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Definitions:

Total Magnification

The combined magnification achieved when using a microscope, determined by multiplying the objective lens magnification by the eyepiece lens magnification.

Economic Order Quantity

A calculation used to determine the most cost-effective quantity of stock to order, balancing ordering costs with holding costs.

Total Ordering Costs

The sum of all expenses involved in placing an order, including logistic, administrative, and product costs.

Holding Costs

Expenses incurred from maintaining and storing inventory, such as warehousing costs, insurance, and deterioration losses.

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