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PST Corporation provides the following financial details: Income Statement for Year Ended December 31, 2023 Total Sales: $950,000 Cost of Sales: $570,000 Gross Profit: $380,000
PST Corporation provides the following financial details:
Income Statement for Year Ended December 31, 2023
- Total Sales: $950,000
- Cost of Sales: $570,000
- Gross Profit: $380,000
- Administrative Expenses: $130,000
- Selling Expenses: $70,000
- EBIT: $180,000
- Interest Expense: $15,000
- Tax Expense: $30,000
- Net Profit: $135,000
Balance Sheet as of December 31, 2023
- Assets:
- Cash and Equivalents: $30,000
- Accounts Receivable: $90,000
- Inventory: $110,000
- Property, Plant, and Equipment (Net): $250,000
- Total Assets: $480,000
- Liabilities and Equity:
- Current Liabilities: $60,000
- Long-term Debt: $160,000
- Common Stock: $200,000
- Retained Earnings: $60,000
- Total Liabilities and Equity: $480,000
Required:
- Compute the ROI for PST Corporation.
- Determine the quick ratio.
- Calculate the net profit margin.
- Find the equity multiplier.
- Assess the interest coverage ratio.
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