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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:

  1. Calculate the Current Ratio and Quick Ratio.
  2. Compute the Debt to Asset Ratio.
  3. Determine the Gross Profit Margin and Net Profit Margin.
  4. Calculate the Return on Investment (ROI) and Return on Equity (ROE).
  5. Discuss the significance of operational efficiency for profitability.

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