58. 
    

    Company PQR is analyzing its financial statements for the quarter ended December 31st, 20XX. The income statement indicates total revenues of $800,000 and total expenses of $600,000, resulting in net income of $200,000. The balance sheet shows total assets of $2,500,000, total liabilities of $1,000,000, and total stockholders' equity of $1,500,000.

    Requirements:

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