6. Comprehensive Financial Analysis for Service Company

For UVW Services, the following financial information is available for the year 2023:

• Revenue: $7,000,000
• Cost of Services: $4,200,000
• Operating Expenses: $1,800,000
• Interest Expense: $200,000
• Tax Expense: $300,000
• Total Assets: $5,000,000
• Total Liabilities: $2,500,000
• Shareholders' Equity: $2,500,000

Requirements:

1. Calculate the Gross Profit and Gross Profit Margin.
2. Determine the Operating Profit and Operating Profit Margin.
3. Compute the Net Profit and Net Profit Margin.
4. Calculate the Return on Assets (ROA) and Return on Equity (ROE).
5. Evaluate the company's debt position using the Debt-to-Equity Ratio.