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The financial data for STU Ltd. for the year ended December 31, 2023, is provided below: Total Assets: $1,200,000 Total Liabilities: $600,000 Shareholders' Equity: $600,000


The financial data for STU Ltd. for the year ended December 31, 2023, is provided below:

  • Total Assets: $1,200,000
  • Total Liabilities: $600,000
  • Shareholders' Equity: $600,000
  • Net Income: $90,000
  • Dividends Paid: $30,000
  • Total Revenue: $600,000
  • Cost of Goods Sold: $250,000
  • Operating Expenses: $180,000
  • Interest Expense: $10,000
  • Tax Expense: $20,000

Required:

  1. Calculate the current ratio.
  2. Determine the acid-test ratio.
  3. Compute the return on assets (ROA).
  4. Calculate the operating profit margin.
  5. Determine the earnings before interest and taxes (EBIT).
  6. Evaluate the liquidity and profitability of STU Ltd.

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