XYZ Corp provides the following financial information as of December 31, 2022:

• Balance Sheet:
  • Cash: $300,000
  • Accounts Receivable: $500,000
  • Inventory: $700,000
  • Prepaid Expenses: $50,000
  • Total Current Assets: $1,550,000
  • Total Assets: $3,500,000
  • Accounts Payable: $200,000
  • Short-term Debt: $100,000
  • Long-term Debt: $1,000,000
  • Shareholders’ Equity: $2,200,000
• Income Statement:
  • Sales: $2,500,000
  • Cost of Goods Sold: $1,200,000
  • Operating Expenses: $600,000
  • Interest Expense: $50,000
  • Tax Rate: 30%

Requirements:

1. Calculate the current ratio.
2. Determine the net profit margin.
3. Compute the return on equity (ROE).
4. Assess the debt-to-equity ratio.