80. 
    

    Company XYZ is analyzing its financial statements for the year ended December 31st, 20XX. The income statement indicates total revenues of $2,800,000 and total expenses of $2,000,000, resulting in net income of $800,000. The balance sheet shows total assets of $12,000,000, total liabilities of $5,000,000, and total stockholders' equity of $7,000,000.

    Requirements:

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