MNO Ltd. has the following financial data:

Income Statement for the Year Ended December 31, 2023

• Sales Revenue: $800,000
• Cost of Goods Sold: $500,000
• Gross Profit: $300,000
• Operating Expenses: $120,000
• Depreciation: $40,000
• Operating Income: $140,000
• Interest Expense: $10,000
• Tax Expense: $30,000
• Net Income: $100,000

Balance Sheet as of December 31, 2023

• Assets:
  • Cash: $50,000
  • Accounts Receivable: $100,000
  • Inventory: $60,000
  • Equipment (Net): $200,000
  • Total Assets: $410,000
• Liabilities and Equity:
  • Accounts Payable: $70,000
  • Short-term Notes Payable: $30,000
  • Long-term Debt: $90,000
  • Total Liabilities: $190,000
• Equity:
  • Common Stock: $120,000
  • Retained Earnings: $100,000
  • Total Equity: $220,000

Required:

1. Determine the return on assets (ROA) for MNO Ltd.
2. Calculate the times interest earned (TIE) ratio.
3. Find the gross profit margin.
4. Assess the financial leverage ratio.
5. Compute the current ratio.