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VWX Ltd's Financial Data as of 30 September 2027: Balance Sheet: Cash: $130,000 Accounts Receivable: $570,000 Inventory: $600,000 Total Current Assets: $1,300,000 Property, Plant, and

VWX Ltd's Financial Data as of 30 September 2027:

  • Balance Sheet:
    • Cash: $130,000
    • Accounts Receivable: $570,000
    • Inventory: $600,000
    • Total Current Assets: $1,300,000
    • Property, Plant, and Equipment: $2,700,000
    • Total Assets: $4,000,000
  • Liabilities and Equity:
    • Current Liabilities: $950,000
    • Long-term Debt: $1,550,000
    • Total Liabilities: $2,500,000
    • Equity: $1,500,000
    • Total Liabilities and Equity: $4,000,000

Income Statement for the Nine Months Ended 30 September 2027:

  • Sales: $3,800,000
  • Cost of Goods Sold: $2,280,000
  • Gross Profit: $1,520,000
  • Operating Expenses: $720,000
  • Operating Profit: $800,000
  • Interest Expense: $120,000
  • Net Profit Before Tax: $680,000
  • Tax @ 27%: $183,600
  • Net Profit: $496,400

Requirements:

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

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