• Cash and cash equivalents = $10000
• Accounts receivable = $0 (Cash is received at time of sale)
• Raw materials inventory = $10500
• Equipment = $5000 (This includes the $1000 cost of the equipment sold in 20XX).
• Accumulated depreciation = $1,000 (This includes the accumulated depreciation of 200 for the equipment sold in 20XX.
• Accounts payable = $0 (Cash is paid at the time of purchase.)
• Note payable = $5000 (This is the note payable which is repaid in 20XX)
• Common stock = $15000
• Retained earnings = $4500

1. Financial Ratios: Calculate the following financial ratios and explain the meaning of the results.
   1. Net Profit Margin
   2. Quick Ratio
   3. Debt-to-Equity Ratio