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DEF Ltd. provides the following information: Current Assets: $800,000 Current Liabilities: $400,000 Inventory: $200,000 Net Income: $150,000 Total Assets: $2,000,000 Total Equity: $1,200,000 a) Calculate

DEF Ltd. provides the following information:

  • Current Assets: $800,000
  • Current Liabilities: $400,000
  • Inventory: $200,000
  • Net Income: $150,000
  • Total Assets: $2,000,000
  • Total Equity: $1,200,000

a) Calculate the Current Ratio.
 b) Calculate the Quick Ratio.
 c) Calculate the Return on Assets (ROA).
 d) Calculate the Return on Equity (ROE).
 e) Assess the liquidity and profitability of the company based on the calculated ratios.

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