KLM Healthcare

Financial Data for 2023 (in $000):

Item	Amount
Cash	40,000
Accounts Receivable	35,000
Inventory	10,000
Prepaid Expenses	5,000
Total Current Assets	90,000
Property, Plant & Equipment	210,000
Total Assets	300,000
Accounts Payable	30,000
Short-term Debt	20,000
Other Current Liabilities	10,000
Total Current Liabilities	60,000
Long-term Debt	100,000
Equity	140,000
Total Liabilities and Equity	300,000

Income Statement for 2023 (in $000):

Item	Amount
Sales	550,000
Cost of Goods Sold	330,000
Gross Profit	220,000
Operating Expenses	90,000
Interest Expense	25,000
Net Income Before Taxes	105,000
Taxes	21,000
Net Income	84,000

Requirements:

1. Calculate the Current Ratio and Quick Ratio.
2. Compute the Debt to Asset Ratio.
3. Determine the Gross Profit Margin and Net Profit Margin.
4. Calculate the Return on Investment (ROI) and Return on Equity (ROE).
5. Discuss the importance of liquidity and solvency in financial management.