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Given the following data for XYZ Corporation for the year ending December 31, 2023: Description Amount ($) Cash 120,000 Accounts Receivable 250,000 Inventory 180,000 Other

Given the following data for XYZ Corporation for the year ending December 31, 2023:

Description

Amount ($)

Cash

120,000

Accounts Receivable

250,000

Inventory

180,000

Other Current Assets

70,000

Total Current Assets

620,000

Property, Plant & Equipment (Net)

1,050,000

Total Assets

1,670,000

Accounts Payable

230,000

Short-term Debt

150,000

Long-term Debt

300,000

Other Liabilities

90,000

Total Liabilities

770,000

Common Stock

400,000

Retained Earnings

500,000

Total Equity

900,000

Total Liabilities and Equity

1,670,000

Requirements:

  • Calculate the Current Ratio.
  • Calculate the Debt to Equity Ratio.
  • Compute the Net Working Capital.
  • Determine the Return on Equity (ROE) if the net income is $150,000.

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