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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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