​​Company XYZ is analyzing its financial statements for the quarter ended March 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 $2,000,000, total liabilities of $800,000, and total stockholders' equity of $1,200,000.

Requirements:

• Calculate the gross profit margin and net profit margin for Company XYZ.
• Evaluate the liquidity position through the current ratio and quick ratio.
• Assess the return on equity (ROE) for Company XYZ.
• Offer recommendations for enhancing profitability and financial stability based on the analysis.