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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:

  1. Compute the ROI for PST Corporation.
  2. Determine the quick ratio.
  3. Calculate the net profit margin.
  4. Find the equity multiplier.
  5. Assess the interest coverage ratio.

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