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Given the financial details of UVW Corporation for the year ended December 31, 2023: Total Assets: $1,500,000 Total Liabilities: $800,000 Shareholders' Equity: $700,000 Net Income:


Given the financial details of UVW Corporation for the year ended December 31, 2023:

  • Total Assets: $1,500,000
  • Total Liabilities: $800,000
  • Shareholders' Equity: $700,000
  • Net Income: $120,000
  • Dividends Paid: $40,000
  • Total Revenue: $800,000
  • Cost of Goods Sold: $350,000
  • Operating Expenses: $220,000
  • Interest Expense: $15,000
  • Tax Expense: $25,000

Required:

  1. Calculate the debt ratio.
  2. Determine the times interest earned ratio.
  3. Compute the asset turnover ratio.
  4. Calculate the profit margin on sales.
  5. Determine the return on common equity.
  6. Evaluate the financial performance and leverage of UVW Corporation.

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