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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:

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

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