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Given the financial details of STU Ltd. for the year ended December 31, 2023: Total Assets: $1,000,000 Total Liabilities: $500,000 Shareholders' Equity: $500,000 Net Income:


Given the financial details of STU Ltd. for the year ended December 31, 2023:

  • Total Assets: $1,000,000
  • Total Liabilities: $500,000
  • Shareholders' Equity: $500,000
  • Net Income: $80,000
  • Dividends Paid: $25,000
  • Total Revenue: $500,000
  • Cost of Goods Sold: $200,000
  • Operating Expenses: $150,000
  • Interest Expense: $7,000
  • Tax Expense: $10,000

Required:

  1. Calculate the debt equity ratio.
  2. Determine the operating cash flow.
  3. Compute the gross profit ratio.
  4. Calculate the net profit margin.
  5. Determine the earnings per share (EPS) considering 20,000 shares outstanding.
  6. Analyze the financial performance and solvency of STU Ltd.

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