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The XYZ Corporations financial statements provide the following information as of December 31, 2022: Assets $ Cash 2,50,000 Accounts Receivable 3,00,000 Inventory 4,50,000 Prepaid Expenses

The XYZ Corporation’s financial statements provide the following information as of December 31, 2022:

Assets

$

Cash

2,50,000

Accounts Receivable

3,00,000

Inventory

4,50,000

Prepaid Expenses

50,000

Property, Plant, and Equipment

9,00,000

Total Assets

19,50,000

Liabilities and Equity

$

Current Liabilities

2,00,000

Long-Term Debt

6,00,000

Equity Share Capital

8,00,000

Retained Earnings

3,50,000

Total Liabilities and Equity

19,50,000

Based on the above data, analyze the company’s financial position by addressing the following points:

  1. Liquidity position.
  2. Solvency position.
  3. Profitability potential.
  4. Efficiency of asset utilization.
  5. Return on equity.

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