52. 
    

    Company DEF is reviewing its financial statements for the quarter ended March 31st, 20XX. The income statement indicates total revenues of $600,000 and total expenses of $400,000, resulting in net income of $200,000. The balance sheet shows total assets of $2,000,000, total liabilities of $800,000, and total stockholders' equity of $1,200,000.

    Requirements:

    • Calculate the gross profit margin and net profit margin for Company DEF.
    • Analyze the liquidity position by calculating the current ratio and quick ratio.
    • Assess the return on equity (ROE) for Company DEF.
    • Provide recommendations for improving profitability and financial stability based on the analysis.