Question
WXY Technology Financial Data for 2023 (in $000): Item Amount Cash 25,000 Accounts Receivable 40,000 Inventory 30,000 Prepaid Expenses 5,000 Total Current Assets 100,000 Property,
WXY Technology
Financial Data for 2023 (in $000):
Item | Amount |
Cash | 25,000 |
Accounts Receivable | 40,000 |
Inventory | 30,000 |
Prepaid Expenses | 5,000 |
Total Current Assets | 100,000 |
Property, Plant & Equipment | 200,000 |
Total Assets | 300,000 |
Accounts Payable | 35,000 |
Short-term Debt | 15,000 |
Other Current Liabilities | 10,000 |
Total Current Liabilities | 60,000 |
Long-term Debt | 100,000 |
Equity | 140,000 |
Total Liabilities and Equity | 300,000 |
Income Statement for 2023 (in $000):
Item | Amount |
Sales | 500,000 |
Cost of Goods Sold | 320,000 |
Gross Profit | 180,000 |
Operating Expenses | 90,000 |
Interest Expense | 25,000 |
Net Income Before Taxes | 65,000 |
Taxes | 13,000 |
Net Income | 52,000 |
Requirements:
- Calculate the Current Ratio and Quick Ratio.
- Compute the Debt to Asset Ratio.
- Determine the Gross Profit Margin and Net Profit Margin.
- Calculate the Return on Investment (ROI) and Return on Equity (ROE).
- Discuss the significance of operational efficiency for profitability.
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