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XYZ Corporation is a manufacturing company that produces and sells electronic gadgets. The company's fiscal year ended on December 31, 20X5. You are provided with

XYZ Corporation is a manufacturing company that produces and sells electronic gadgets. The company's fiscal year ended on December 31, 20X5. You are provided with the following information:

  1. Income Statement for the Year Ended December 31, 20X5:

Item

Amount (USD)

Sales Revenue

$5,000,000

Cost of Goods Sold

$2,000,000

Gross Profit

?

Operating Expenses

$1,200,000

Selling & Administrative Expenses

$600,000

Depreciation Expense

$100,000

Operating Income

?

Interest Expense

$50,000

Income Before Tax

?

Income Tax Expense

$300,000

Net Income

?

  1. Balance Sheet as of December 31, 20X5:

Assets

Amount (USD)

Liabilities & Equity

Amount (USD)

Current Assets:


Current Liabilities:


Cash and Cash Equivalents

$500,000

Accounts Payable

$200,000

Accounts Receivable

$600,000

Short-term Loans Payable

$300,000

Inventory

$800,000

Total Current Liabilities

?

Total Current Assets

?



Non-current Assets:


Long-term Loans Payable

$1,000,000

Property, Plant & Equipment (net)

$2,000,000

Total Liabilities

?

Total Assets

?





Shareholders' Equity


Common Stock

$1,000,000

Retained Earnings

?

Total Shareholders' Equity

?

Total Liabilities & Equity

?

  1. Additional Information:
    • Dividends paid during the year amounted to $150,000.
    • XYZ Corporation's effective tax rate is 30%.

Required:

  1. Complete the missing amounts in the income statement and balance sheet.
  2. Calculate the following financial ratios for XYZ Corporation:
    • Gross Profit Margin
    • Operating Profit Margin
    • Net Profit Margin
    • Return on Assets (ROA)
    • Return on Equity (ROE)
    • Current Ratio
    • Debt-to-Equity Ratio
  3. Based on the financial ratios calculated, provide an analysis of XYZ Corporation's financial performance and financial position for the year ended December 31, 20X5.

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