24. 
    

    Company LMN is reviewing its financial statements for the quarter ended December 31st, 20XX. The income statement shows total revenues of $1,000,000 and total expenses of $700,000, resulting in net income of $300,000. The balance sheet indicates total assets of $4,000,000, total liabilities of $1,500,000, and total stockholders' equity of $2,500,000.

    Requirements:

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