Question
WXY Inc.'s Financial Overview as of 30 June 2025: $ Cash 170,000 Accounts Receivable 520,000 Inventory 610,000 Total Current Assets 1,300,000 Fixed Assets 2,900,000 Total
WXY Inc.'s Financial Overview as of 30 June 2025:
$ | |
Cash | 170,000 |
Accounts Receivable | 520,000 |
Inventory | 610,000 |
Total Current Assets | 1,300,000 |
Fixed Assets | 2,900,000 |
Total Assets | 4,200,000 |
$ | |
Current Liabilities | 950,000 |
Long-term Debt | 1,800,000 |
Total Liabilities | 2,750,000 |
Equity | 1,450,000 |
Total Liabilities and Equity | 4,200,000 |
Income Statement for the Six Months Ended 30 June 2025:
$ | |
Sales | 4,800,000 |
Cost of Goods Sold | 2,880,000 |
Gross Profit | 1,920,000 |
Operating Expenses | 960,000 |
Operating Profit | 960,000 |
Interest Expense | 180,000 |
Net Profit Before Tax | 780,000 |
Tax @ 27% | 210,600 |
Net Profit | 569,400 |
Requirements:
- Calculate the current ratio.
- Compute the debt ratio.
- Evaluate the gross profit margin.
- Determine the operating profit margin.
- Assess the return on assets (ROA).
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