Financial details for EcoSolutions Inc. are as follows:
oRevenue: $20 million
oCost of Goods Sold: $7 million
oOperating Expenses: $5 million
oNet Income: $3.5 million
oTotal Assets: $25 million
oTotal Liabilities: $10 million
Requirements:
oCalculate the gross profit and net profit margins.
oCompute the return on equity (ROE).
oDetermine the quick ratio, assuming inventory is $2.5 million and current liabilities are $5 million.