XYZ Pharmaceuticals

Financial Data for 2023 (in $000):

Item	Amount
Cash	30,000
Accounts Receivable	45,000
Inventory	25,000
Prepaid Expenses	5,000
Total Current Assets	105,000
Property, Plant & Equipment	215,000
Total Assets	320,000
Accounts Payable	40,000
Short-term Debt	20,000
Other Current Liabilities	10,000
Total Current Liabilities	70,000
Long-term Debt	110,000
Equity	140,000
Total Liabilities and Equity	320,000

Income Statement for 2023 (in $000):

Item	Amount
Sales	550,000
Cost of Goods Sold	350,000
Gross Profit	200,000
Operating Expenses	90,000
Interest Expense	30,000
Net Income Before Taxes	80,000
Taxes	16,000
Net Income	64,000

Requirements:

1. Calculate the Current Ratio and Quick Ratio.
2. Compute the Debt-Equity Ratio.
3. Determine the Gross Profit Margin and Net Profit Margin.
4. Calculate the Asset Turnover Ratio and Inventory Turnover Ratio.
5. Explain how liquidity and profitability ratios are critical in financial analysis.