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CDE Ltd. has the following financial statements for the fiscal year ended June 30, 2023. Balance Sheet as of June 30, 2023 Cash: $290,000 Marketable

CDE Ltd. has the following financial statements for the fiscal year ended June 30, 2023.

Balance Sheet as of June 30, 2023

  • Cash: $290,000
  • Marketable Securities: $180,000
  • Accounts Receivable: $450,000
  • Inventory: $560,000
  • Prepaid Expenses: $70,000
  • Property, Plant, and Equipment (Net): $1,900,000
  • Total Assets: $3,450,000

Liabilities and Equity

  • Accounts Payable: $340,000
  • Short-term Debt: $260,000
  • Long-term Debt: $950,000
  • Common Stock: $1,300,000
  • Retained Earnings: $600,000
  • Total Liabilities and Equity: $3,450,000

Income Statement for the year ended June 30, 2023

  • Sales: $3,700,000
  • Cost of Goods Sold: $2,200,000
  • Operating Expenses: $900,000
  • Interest Expense: $70,000
  • Taxes (28%): $151,200
  • Net Income: $378,800

Analyze the financial health of CDE Ltd. in terms of (i) liquidity ratios, (ii) leverage ratios, (iii) profitability ratios, and (iv) efficiency ratios.

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