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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:
- Calculate the current ratio.
- Compute the equity ratio.
- Evaluate the gross profit margin.
- Determine the operating profit margin.
- Assess the return on equity (ROE).
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