Question
You have been hired as a financial analyst by XYZ Corporation, and your first task is to analyze the company's financial statements and provide a
You have been hired as a financial analyst by XYZ Corporation, and your first task is to analyze the company's financial statements and provide a report to the management. Using the financial statements of the company, answer the following questions:
What is the company's current ratio, quick ratio, and debt-to-equity ratio?
What is the company's net profit margin, return on assets, and return on equity?
Financial Statements:
Income Statement
Revenue: $500,000
Cost of Goods Sold: $200,000
Gross Profit: $300,000
Operating Expenses: $150,000
Net Profit: $150,000
Balance Sheet
Cash: $50,000
Accounts Receivable: $100,000
Inventory: $75,000
Total Current Assets: $225,000
Property, Plant, and Equipment: $200,000
Total Assets: $425,000
Accounts Payable: $75,000
Accrued Expenses: $25,000
Total Current Liabilities: $100,000
Long-Term Debt: $100,000
Total Liabilities: $200,000
Shareholders' Equity: $225,000
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