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EFG Inc.'s Financial Overview as of 31 March 2026: Balance Sheet: Cash: $250,000 Accounts Receivable: $400,000 Inventory: $600,000 Total Current Assets: $1,250,000 Property, Plant, and
EFG Inc.'s Financial Overview as of 31 March 2026:
- Balance Sheet:
- Cash: $250,000
- Accounts Receivable: $400,000
- Inventory: $600,000
- Total Current Assets: $1,250,000
- Property, Plant, and Equipment: $3,750,000
- Total Assets: $5,000,000
- Liabilities and Equity:
- Current Liabilities: $1,050,000
- Long-term Debt: $2,250,000
- Total Liabilities: $3,300,000
- Equity: $1,700,000
- Total Liabilities and Equity: $5,000,000
Income Statement for the Year Ended 31 March 2026:
- Sales: $6,500,000
- Cost of Goods Sold: $4,200,000
- Gross Profit: $2,300,000
- Operating Expenses: $1,200,000
- Operating Profit: $1,100,000
- Interest Expense: $250,000
- Net Profit Before Tax: $850,000
- Tax @ 30%: $255,000
- Net Profit: $595,000
Requirements:
- Calculate the current ratio.
- Determine the debt ratio.
- Compute the gross profit margin.
- Assess the operating profit margin.
- Evaluate the return on assets (ROA).
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