Question
The financial statements of Sunshine Inc. for the year ended June 30, 2023, are as follows: Income Statement Amount Net Sales $800,000 Cost of Goods
The financial statements of Sunshine Inc. for the year ended June 30, 2023, are as follows:
Income Statement | Amount |
Net Sales | $800,000 |
Cost of Goods Sold | $480,000 |
Operating Expenses | $200,000 |
Interest Expense | $30,000 |
Tax Expense | $27,000 |
Balance Sheet | Amount |
Current Assets | $220,000 |
Total Assets | $520,000 |
Current Liabilities | $80,000 |
Long-term Debt | $140,000 |
Shareholders' Equity | $300,000 |
Requirements: a. Calculate the debt to equity ratio. b. Determine the interest coverage ratio. c. Compute the return on equity. d. Evaluate the company's quick ratio. e. Assess the company’s gross profit margin.
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