PQR Enterprises has the following financial information:

Income Statement for the Year Ended December 31, 2023

• Net Sales: $1,200,000
• Cost of Goods Sold: $800,000
• Gross Profit: $400,000
• Operating Expenses: $120,000
• Depreciation: $30,000
• Operating Income: $250,000
• Interest Expense: $25,000
• Income Before Taxes: $225,000
• Taxes: $67,500
• Net Income: $157,500

Balance Sheet as of December 31, 2023

• Assets:
  • Cash: $40,000
  • Accounts Receivable: $160,000
  • Inventory: $120,000
  • Plant, Property, and Equipment (Net): $280,000
  • Total Assets: $600,000
• Liabilities:
  • Accounts Payable: $70,000
  • Short-term Notes Payable: $60,000
  • Long-term Debt: $90,000
  • Total Liabilities: $220,000
• Equity:
  • Common Stock: $200,000
  • Retained Earnings: $180,000
  • Total Equity: $380,000

Required:

1. Determine the return on equity (ROE) for PQR Enterprises.
2. Calculate the quick ratio.
3. Find the operating margin ratio.
4. Assess the financial leverage ratio.
5. Compute the times interest earned (TIE) ratio.