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Company: PQR Logistics Financial Data for 2023 (in $000): Item Amount Cash 40,000 Accounts Receivable 35,000 Inventory 15,000 Prepaid Expenses 10,000 Total Current Assets 100,000

Company: PQR Logistics

Financial Data for 2023 (in $000):

Item

Amount

Cash

40,000

Accounts Receivable

35,000

Inventory

15,000

Prepaid Expenses

10,000

Total Current Assets

100,000

Property, Plant & Equipment

180,000

Total Assets

280,000

Accounts Payable

25,000

Short-term Debt

20,000

Other Current Liabilities

10,000

Total Current Liabilities

55,000

Long-term Debt

90,000

Equity

135,000

Total Liabilities and Equity

280,000

Income Statement for 2023 (in $000):

Item

Amount

Sales

500,000

Cost of Goods Sold

320,000

Gross Profit

180,000

Operating Expenses

80,000

Interest Expense

25,000

Net Income Before Taxes

75,000

Taxes

15,000

Net Income

60,000

Requirements:

  1. Calculate the Current Ratio and Quick Ratio.
  2. Compute the Debt-Equity Ratio.
  3. Determine the Gross Profit Margin and Net Profit Margin.
  4. Calculate the Asset Turnover Ratio and Inventory Turnover Ratio.
  5. Explain how liquidity ratios affect the company's short-term financial stability.

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