77. Company STU is analyzing its financial statements for the year ended December 31st, 20XX. The income statement indicates total revenues of $3,000,000 and total expenses of $2,000,000, resulting in net income of $1,000,000. The balance sheet shows total assets of $10,000,000, total liabilities of $4,000,000, and total stockholders' equity of $6,000,000.

    Requirements:

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