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IJK Corp. provides the following financial details: Income Statement for Year Ended December 31, 2023 Total Sales: $1,800,000 Cost of Sales: $1,100,000 Gross Profit: $700,000
IJK Corp. provides the following financial details:
Income Statement for Year Ended December 31, 2023
- Total Sales: $1,800,000
- Cost of Sales: $1,100,000
- Gross Profit: $700,000
- Administrative Expenses: $300,000
- Selling Expenses: $150,000
- EBIT: $250,000
- Interest Expense: $40,000
- Tax Expense: $70,000
- Net Profit: $140,000
Balance Sheet as of December 31, 2023
- Assets:
- Cash and Equivalents: $90,000
- Accounts Receivable: $180,000
- Inventory: $150,000
- Property, Plant, and Equipment (Net): $400,000
- Total Assets: $820,000
- Liabilities and Equity:
- Current Liabilities: $120,000
- Long-term Debt: $200,000
- Common Stock: $300,000
- Retained Earnings: $200,000
- Total Liabilities and Equity: $820,000
Required:
- Compute the ROI for IJK Corp.
- Determine the quick ratio.
- Calculate the net profit margin.
- Find the equity multiplier.
- Assess the interest coverage ratio.
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