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Analyze the financial performance of Le Bistro using the following information: Net Sales: 1,800,000 Cost of Goods Sold: 720,000 Operating Expenses: 400,000 Interest Expense: 25,000
Analyze the financial performance of Le Bistro using the following information:
- Net Sales: €1,800,000
- Cost of Goods Sold: €720,000
- Operating Expenses: €400,000
- Interest Expense: €25,000
- Income Tax Expense: €150,000
- Average Total Assets: €2,500,000
- Average Total Equity: €1,000,000
Calculate the following financial ratios: gross profit margin, operating profit margin, return on assets (ROA), return on equity (ROE), debt-to-equity ratio, and interest coverage ratio.
Interpret the results of the financial ratios and provide recommendations for Le Bistro's financial management.
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