88. 
    

    Company MNO is analyzing its financial statements for the year ended December 31st, 20XX. The income statement indicates total revenues of $4,000,000 and total expenses of $2,500,000, resulting in net income of $1,500,000. The balance sheet shows total assets of $20,000,000, total liabilities of $8,000,000, and total stockholders' equity of $12,000,000.

    Requirements:

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