ACD Company has the following financial information:

Income Statement for the Year Ended December 31, 2023

• Revenues: $1,050,000
• Cost of Sales: $600,000
• Gross Profit: $450,000
• Operating Expenses: $150,000
• Depreciation: $50,000
• Operating Income: $250,000
• Interest Expense: $20,000
• Income Before Taxes: $230,000
• Taxes: $69,000
• Net Income: $161,000

Balance Sheet as of December 31, 2023

• Assets:
  • Cash: $55,000
  • Accounts Receivable: $105,000
  • Inventory: $90,000
  • Fixed Assets (Net): $250,000
  • Total Assets: $500,000
• Liabilities:
  • Accounts Payable: $75,000
  • Short-term Debt: $50,000
  • Long-term Debt: $75,000
  • Total Liabilities: $200,000
• Equity:
  • Common Stock: $150,000
  • Retained Earnings: $150,000
  • Total Equity: $300,000

Required:

1. Calculate the return on equity (ROE) for ACD Company.
2. Determine the current ratio.
3. Find the operating margin ratio.
4. Assess the financial leverage ratio.
5. Compute the times interest earned (TIE) ratio.