• Calculate the financial ratios for XYZ Corporation using the following data:

  Category	Amount ($)
  Current Assets	$50,000
  Current Liabilities	$30,000
  Total Assets	$100,000
  Total Liabilities	$40,000
  Equity	$60,000

  Requirements:

  • Calculate the current ratio and debt-to-equity ratio.
  • Interpret the financial ratios in terms of liquidity and solvency.
  • Discuss the implications of the ratios on the company's financial position.