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Accounts Receivable $20,000 ($30,000 in the previous year) Total Current Assets $300,000 Investments $50,000 Total Assets $1,000,000 Total Current Liabilities $100,000 Total Long-Term Debt $400,000

Accounts Receivable $20,000 ($30,000 in the previous year)
Total Current Assets $300,000
Investments $50,000
Total Assets $1,000,000
Total Current Liabilities $100,000
Total Long-Term Debt $400,000
Total Liabilities $500,000
Net Income $300,000
Total Revenue (Sales) $900,000
Industry average: Current ratio 1
Industry average: Solvency ratio 2.5
Industry average: Profit margin ratio 35%

(1) What is the Profit Margin of this company; and (2) who would prefer a higher profit margin ratio? (Round to the nearest whole number)

(1) What is the Solvency Ratio of this company; and (2) who would prefer a higher solvency ratio?

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