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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:
- Liquidity position.
- Solvency position.
- Profitability potential.
- Efficiency of asset utilization.
- Return on equity.
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