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BCD Telecom Financial Data for 2023 (in $000): Item Amount Cash 35,000 Accounts Receivable 45,000 Inventory 15,000 Prepaid Expenses 5,000 Total Current Assets 100,000 Property,

BCD Telecom

Financial Data for 2023 (in $000):

Item

Amount

Cash

35,000

Accounts Receivable

45,000

Inventory

15,000

Prepaid Expenses

5,000

Total Current Assets

100,000

Property, Plant & Equipment

210,000

Total Assets

310,000

Accounts Payable

30,000

Short-term Debt

25,000

Other Current Liabilities

10,000

Total Current Liabilities

65,000

Long-term Debt

100,000

Equity

145,000

Total Liabilities and Equity

310,000

Income Statement for 2023 (in $000):

Item

Amount

Sales

600,000

Cost of Goods Sold

350,000

Gross Profit

250,000

Operating Expenses

110,000

Interest Expense

30,000

Net Income Before Taxes

110,000

Taxes

22,000

Net Income

88,000

Requirements:

  1. Calculate the Current Ratio and Quick Ratio.
  2. Compute the Debt-Equity Ratio.
  3. Determine the Gross Profit Margin and Net Profit Margin.
  4. Calculate the Asset Turnover Ratio and Inventory Turnover Ratio.
  5. Explain how profitability ratios can impact investor confidence.

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