Examine the income statement for STU Global for the fiscal year ending December 31, 2023, to evaluate its profitability ratios and efficiency ratios.

STU Global Income Statement	Year Ended December 31, 2023
Revenue
Sales Revenue	$950,000
Service Revenue	$150,000
Total Revenue	$1,100,000
Expenses
Cost of Goods Sold	$500,000
Operating Expenses	$250,000
Depreciation Expense	$30,000
Interest Expense	$10,000
Income Tax Expense	$70,000
Total Expenses	$860,000
Net Income	$240,000

Questions:

1. Compute the gross profit ratio and net profit ratio, and explain their significance in assessing the company’s profitability.
2. Calculate the asset turnover ratio and discuss its relevance in evaluating the efficiency with which the company utilizes its assets to generate revenue