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LMN Co. has the following financial data: Income Statement for the Year Ended December 31, 2023 Sales Revenue: $2,000,000 Cost of Goods Sold: $1,200,000 Gross

LMN Co. has the following financial data:

Income Statement for the Year Ended December 31, 2023

  • Sales Revenue: $2,000,000
  • Cost of Goods Sold: $1,200,000
  • Gross Profit: $800,000
  • Selling and Administrative Expenses: $300,000
  • Depreciation Expense: $100,000
  • Operating Income: $400,000
  • Interest Expense: $50,000
  • Tax Expense: $100,000
  • Net Income: $250,000

Balance Sheet as of December 31, 2023

  • Assets:
    • Cash: $100,000
    • Accounts Receivable: $300,000
    • Inventory: $250,000
    • Property, Plant, and Equipment (Net): $600,000
    • Total Assets: $1,250,000
  • Liabilities and Equity:
    • Accounts Payable: $150,000
    • Notes Payable: $200,000
    • Long-term Debt: $300,000
    • Total Liabilities: $650,000
  • Equity:
    • Common Stock: $400,000
    • Retained Earnings: $200,000
    • Total Equity: $600,000

Required:

  1. Calculate the ROI for LMN Co.
  2. Determine the inventory turnover ratio.
  3. Find the net profit margin.
  4. Calculate the current ratio.
  5. Compute the equity ratio.

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