GHI Inc.'s Financial Overview as of 31 March 2024:

• Balance Sheet:
  • Cash: $120,000
  • Accounts Receivable: $480,000
  • Inventory: $400,000
  • Total Current Assets: $1,000,000
  • Property, Plant, and Equipment: $3,500,000
  • Total Assets: $4,500,000
• Liabilities and Equity:
  • Current Liabilities: $700,000
  • Long-term Debt: $2,300,000
  • Total Liabilities: $3,000,000
  • Equity: $1,500,000
  • Total Liabilities and Equity: $4,500,000

Income Statement for the Year Ended 31 March 2024:

• Sales: $5,500,000
• Cost of Goods Sold: $3,300,000
• Gross Profit: $2,200,000
• Operating Expenses: $1,200,000
• Operating Profit: $1,000,000
• Interest Expense: $250,000
• Net Profit Before Tax: $750,000
• Tax @ 30%: $225,000
• Net Profit: $525,000

Requirements:

1. Determine the current ratio.
2. Compute the debt ratio.
3. Calculate the gross profit margin.
4. Assess the operating profit margin.
5. Evaluate the return on equity (ROE).