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Using the financial information for ABC Corporation for the year ended December 31, 2023: Total Assets: $800,000 Total Liabilities: $400,000 Shareholders' Equity: $400,000 Net Income:
Using the financial information for ABC Corporation for the year ended December 31, 2023:
- Total Assets: $800,000
- Total Liabilities: $400,000
- Shareholders' Equity: $400,000
- Net Income: $60,000
- Dividends Paid: $20,000
- Total Revenue: $400,000
- Cost of Goods Sold: $180,000
- Operating Expenses: $120,000
- Interest Expense: $8,000
- Tax Expense: $12,000
Required:
- Calculate the debt ratio.
- Determine the times interest earned ratio.
- Compute the asset turnover ratio.
- Calculate the profit margin on sales.
- Determine the return on common equity.
- Evaluate the financial performance and leverage of ABC Corporation.
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