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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:

  1. Calculate the current ratio.
  2. Determine the debt ratio.
  3. Compute the gross profit margin.
  4. Assess the operating profit margin.
  5. Evaluate the return on assets (ROA).

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