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Financial Statement Analysis for Ratio Interpretation : A company's financial statements reveal the following data: total assets of $500,000, total liabilities of $200,000, and shareholders'
Financial Statement Analysis for Ratio Interpretation: A company's financial statements reveal the following data: total assets of $500,000, total liabilities of $200,000, and shareholders' equity of $300,000. Additionally, the company reported net income of $50,000 and sales revenue of $300,000. Calculate the debt-to-equity ratio, return on equity (ROE), and gross profit margin. Interpret these ratios and margins in terms of the company's financial performance and risk.
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