DEF Inc. has the following financial data for the year ended December 31, 2023.

Balance Sheet as of December 31, 2023

• Cash: $250,000
• Accounts Receivable: $450,000
• Inventory: $550,000
• Prepaid Expenses: $60,000
• Property, Plant, and Equipment (Net): $2,000,000
• Total Assets: $3,310,000

Liabilities and Equity

• Accounts Payable: $280,000
• Short-term Debt: $220,000
• Long-term Debt: $900,000
• Common Stock: $1,500,000
• Retained Earnings: $410,000
• Total Liabilities and Equity: $3,310,000

Income Statement for the year ended December 31, 2023

• Sales: $3,200,000
• Cost of Goods Sold: $1,900,000
• Operating Expenses: $800,000
• Interest Expense: $70,000
• Taxes (35%): $140,000
• Net Income: $290,000

Based on the financial information provided, analyze DEF Inc.’s performance in terms of (i) liquidity, (ii) solvency, (iii) profitability, and (iv) activity ratios.