WXY Healthcare

Income Statement (in $ thousands)

Item	Amount
Sales Revenue	19,000
Cost of Goods Sold	12,500
Gross Profit	6,500
Operating Expenses	5,000
Operating Profit	1,500
Interest Expenses	600
Income Tax Expense	450
Net Income	450

Balance Sheet (in $ thousands)

Assets

• Current Assets
  • Cash: 800
  • Accounts Receivable: 4,000
  • Inventory: 3,500
  • Total Current Assets: 8,300
• Long-Term Assets
  • Property, Plant & Equipment (net): 8,000
  • Other Assets: 7,000
  • Total Long-Term Assets: 15,000
• Total Assets: 23,300

Liabilities and Equity

• Current Liabilities
  • Trade Creditors: 3,000
  • Short-Term Bank Loans: 2,500
  • Total Current Liabilities: 5,500
• Long-Term Liabilities
  • Long-Term Debt: 10,000
  • Other Liabilities: 3,000
  • Total Long-Term Liabilities: 13,000
• Total Liabilities: 18,500
• Equity
  • Common Shares: 2,500
  • Retained Earnings: 2,300
  • Total Equity: 4,800
• Total Liabilities and Equity: 23,300

Required:

1. Determine the gross profit margin and net profit margin for WXY Healthcare.
2. Calculate the return on equity (ROE) and return on assets (ROA).
3. Evaluate the company's liquidity using the current ratio and quick ratio.
4. WXY Healthcare plans to acquire a new healthcare technology for $4,000,000. Suggest a financing strategy for this acquisition.
5. Propose measures to improve the company’s operating efficiency and reduce interest expenses.