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XYZ Inc. has provided the following financial information: Cash: $95,000 Accounts Receivable: $60,000 Inventory: $25,000 Accounts Payable: $15,000 Short-term Loans: $18,000 Long-term Debt: $40,000 Common

XYZ Inc. has provided the following financial information:

Cash: $95,000

Accounts Receivable: $60,000

Inventory: $25,000

Accounts Payable: $15,000

Short-term Loans: $18,000

Long-term Debt: $40,000

Common Stock: $70,000

Retained Earnings (beginning of the year): $35,000

Sales Revenue: $140,000

Cost of Goods Sold: $70,000

Operating Expenses: $30,000

Interest Expense: $5,000

Income Tax Expense: $8,000

Requirements:

Compute the gross profit.

Calculate the net income for the year.

Determine the ending retained earnings.

Calculate the current ratio.

Compute the return on equity (ROE).

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