Financial details for FreshFoods Inc. are as follows:
o Revenue: $25 million
o Cost of Goods Sold: $10 million
o Operating Expenses: $6 million
o Net Income: $4 million
o Total Assets: $30 million
o Total Liabilities: $8 million
Requirements:
o Calculate the gross profit and net profit margins.
o Compute the return on equity (ROE).
o Determine the quick ratio, assuming inventory is $3 million and current liabilities are $6 million.