EFG Construction

Financial Data for 2023 (in $000):

Item	Amount
Cash	20,000
Accounts Receivable	40,000
Inventory	10,000
Prepaid Expenses	5,000
Total Current Assets	75,000
Property, Plant & Equipment	175,000
Total Assets	250,000
Accounts Payable	35,000
Short-term Debt	20,000
Other Current Liabilities	10,000
Total Current Liabilities	65,000
Long-term Debt	80,000
Equity	105,000
Total Liabilities and Equity	250,000

Income Statement for 2023 (in $000):

Item	Amount
Sales	400,000
Cost of Goods Sold	250,000
Gross Profit	150,000
Operating Expenses	70,000
Interest Expense	20,000
Net Income Before Taxes	60,000
Taxes	12,000
Net Income	48,000

Requirements:

1. Calculate the Current Ratio and Quick Ratio.
2. Compute the Debt to Asset Ratio.
3. Determine the Gross Profit Margin and Net Profit Margin.
4. Calculate the Return on Investment (ROI) and Return on Equity (ROE).
5. Discuss the implications of leverage ratios on financial risk.