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Evaluate the financial statements of HealthTech Inc. for the years ended December 31, 2023, 2022, and 2021, and answer the following: HealthTech Inc. Comparative Income
Evaluate the financial statements of HealthTech Inc. for the years ended December 31, 2023, 2022, and 2021, and answer the following:
HealthTech Inc. Comparative Income Statements for Years Ended December 31, 2023, 2022, and 2021:
- Sales: 2023: $9,500,000, 2022: $9,000,000, 2021: $8,500,000
- Cost of Goods Sold: 2023: $4,500,000, 2022: $4,200,000, 2021: $4,000,000
- Gross Profit: 2023: $5,000,000, 2022: $4,800,000, 2021: $4,500,000
- Operating Expenses: 2023: $2,000,000, 2022: $1,900,000, 2021: $1,800,000
- Net Income: 2023: $2,000,000, 2022: $1,900,000, 2021: $1,800,000
HealthTech Inc. Comparative Balance Sheets as of December 31, 2023, 2022, and 2021:
- Total Assets: 2023: $10,000,000, 2022: $9,500,000, 2021: $9,000,000
- Total Liabilities: 2023: $5,000,000, 2022: $4,800,000, 2021: $4,500,000
- Shareholders' Equity: 2023: $5,000,000, 2022: $4,700,000, 2021: $4,500,000
Requirements:
- Calculate the gross profit margin for each year.
- Compute the return on assets (ROA) for each year.
- Determine the net profit margin for each year.
- Calculate the debt-to-equity ratio for each year.
- Discuss the company's financial leverage over the three years.
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