please answer this one

The ABC Corporation is your first company client. The ABC is in talk with The XYZ Group, LLC for the possibility of forming a business collaboration relationship. The XYZ Group, LLC provided its financial statements, as below, for ABC s review, and ABC asks you, as their consultant, to evaluate the financials of XYZ through the financial ratio analysis to help them make a final decision on the collaboration. In particular, ABC asks you to pay special attention on XYZ's current ratio, quick ratio, debt ratio, TIE, DSO, inventory turnover, fixed asset turnover, total asset turnover, operating margin, profit margin and basic earning power. What's your conclusion, and why? Balance Sheet \begin{tabular}{|l|r|r|} \hline & \multicolumn{1}{|c|}{2023E} & \multicolumn{1}{|c|}{2022} \\ \hline Cash & 85,000 & 7,000 \\ \hline A/R & 850,000 & 630,000 \\ \hline Inventories & 1,500,000 & 1,300,000 \\ \hline Total CA & 2,435,000 & 1,937,000 \\ \hline Gross FA & 1,200,000 & 1,100,000 \\ \hline Less: Deprec. & 380,000 & 260,000 \\ \hline Net FA & 820,000 & 840,000 \\ \hline Total Assets & 3,255,000 & 2,777,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline & \multicolumn{1}{|c|}{2023E} & \multicolumn{1}{|c|}{2022} \\ \hline Accts payable & 400,000 & 520,000 \\ \hline Notes payable & 250,000 & 630,000 \\ \hline Accruals & 400,000 & 420,000 \\ \hline Total CL & 1,050,000 & 1,570,000 \\ \hline Long-term debt & 400,000 & 710,000 \\ \hline Common stock & 1,600,000 & 470,000 \\ \hline Retained eamings & 205,000 & 27,000 \\ \hline Total Equity & 1,805,000 & 497,000 \\ \hline Total L \& E & 3,255,000 & 2,777,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline Income Statement & \\ \hline & \multicolumn{1}{|c|}{2023E} & \multicolumn{1}{|c|}{2022} \\ \hline Sales & 7,000,000 & 6,000,000 \\ \hline COGS & 5,800,000 & 5,500,000 \\ \hline Other expenses & 550,000 & 520,000 \\ \hline EBITDA & 650,000 & (20,000) \\ \hline Deproc, \& amort. & 116,000 & 116,000 \\ \hline EBIT & 534,000 & (136,000) \\ \hline Interest exp. & 70,000 & 136,000 \\ \hline EBT & 464,000 & (272,000) \\ \hline Taxes & 185,600 & (108,800) \\ \hline Net income & 278,400 & (163,200) \\ \hline \end{tabular} \begin{tabular}{|l|c|} \hline Industry Average & Ind \\ \hline Current Ratio & 2.5X \\ \hline Quick Ratio & 1X \\ \hline Debt ratio & 50% \\ \hline TIE & 6X \\ \hline DSO & 35 \\ \hline Inventory Tumover & 5X \\ \hline Fixed Asset Turnover & 7X \\ \hline Total Asset Turnover & 3X \\ \hline Operating margin & 8.0% \\ \hline Profit margin & 3.0% \\ \hline BEP & 18.0% \\ \hline \end{tabular}