TUV Ltd's Financial Data as of 31 March 2025:

• Balance Sheet:
  • Cash: $200,000
  • Accounts Receivable: $600,000
  • Inventory: $500,000
  • Total Current Assets: $1,300,000
  • Property, Plant, and Equipment: $2,700,000
  • Total Assets: $4,000,000
• Liabilities and Equity:
  • Current Liabilities: $800,000
  • Long-term Debt: $1,600,000
  • Total Liabilities: $2,400,000
  • Equity: $1,600,000
  • Total Liabilities and Equity: $4,000,000

Income Statement for the Year Ended 31 March 2025:

• Sales: $5,200,000
• Cost of Goods Sold: $3,120,000
• Gross Profit: $2,080,000
• Operating Expenses: $1,080,000
• Operating Profit: $1,000,000
• Interest Expense: $220,000
• Net Profit Before Tax: $780,000
• Tax @ 28%: $218,400
• Net Profit: $561,600

Requirements:

1. Calculate the current ratio.
2. Determine the equity ratio.
3. Compute the gross profit margin.
4. Evaluate the net profit margin.
5. Assess the return on equity (ROE).