QRS Mining

Financial Data for 2023 (in $000):

Item	Amount
Cash	35,000
Accounts Receivable	50,000
Inventory	15,000
Prepaid Expenses	10,000
Total Current Assets	110,000
Property, Plant & Equipment	240,000
Total Assets	350,000
Accounts Payable	40,000
Short-term Debt	25,000
Other Current Liabilities	15,000
Total Current Liabilities	80,000
Long-term Debt	130,000
Equity	140,000
Total Liabilities and Equity	350,000

Income Statement for 2023 (in $000):

Item	Amount
Sales	700,000
Cost of Goods Sold	420,000
Gross Profit	280,000
Operating Expenses	120,000
Interest Expense	30,000
Net Income Before Taxes	130,000
Taxes	26,000
Net Income	104,000

Requirements:

1. Calculate the Current Ratio and Quick Ratio.
2. Compute the Debt to Asset Ratio.
3. Determine the Gross Profit Margin and Net Profit Margin.
4. Calculate the Return on Investment (ROI) and Return on Equity (ROE).
5. Discuss the impact of financial leverage on company profitability.