ABC Manufacturing

Financial Data for 2023 (in $000):

Item	Amount
Cash	25,000
Accounts Receivable	35,000
Inventory	20,000
Prepaid Expenses	5,000
Total Current Assets	85,000
Property, Plant & Equipment	215,000
Total Assets	300,000
Accounts Payable	30,000
Short-term Debt	20,000
Other Current Liabilities	10,000
Total Current Liabilities	60,000
Long-term Debt	110,000
Equity	130,000
Total Liabilities and Equity	300,000

Income Statement for 2023 (in $000):

Item	Amount
Sales	600,000
Cost of Goods Sold	360,000
Gross Profit	240,000
Operating Expenses	100,000
Interest Expense	25,000
Net Income Before Taxes	115,000
Taxes	23,000
Net Income	92,000

Requirements:

1. Calculate the Current Ratio and Quick Ratio.
2. Compute the Debt to Asset Ratio.
3. Determine the Gross Profit Margin and Net Profit Margin.
4. Calculate the Return on Investment (ROI) and Return on Equity (ROE).
5. Discuss the importance of maintaining a balanced capital structure.