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YZA Energy Financial Data for 2023 (in $000): Item Amount Cash 25,000 Accounts Receivable 30,000 Inventory 10,000 Prepaid Expenses 5,000 Total Current Assets 70,000 Property,

YZA Energy

Financial Data for 2023 (in $000):

Item

Amount

Cash

25,000

Accounts Receivable

30,000

Inventory

10,000

Prepaid Expenses

5,000

Total Current Assets

70,000

Property, Plant & Equipment

230,000

Total Assets

300,000

Accounts Payable

40,000

Short-term Debt

20,000

Other Current Liabilities

10,000

Total Current Liabilities

70,000

Long-term Debt

150,000

Equity

80,000

Total Liabilities and Equity

300,000

Income Statement for 2023 (in $000):

Item

Amount

Sales

500,000

Cost of Goods Sold

280,000

Gross Profit

220,000

Operating Expenses

100,000

Interest Expense

20,000

Net Income Before Taxes

100,000

Taxes

20,000

Net Income

80,000

Requirements:

  1. Calculate the Current Ratio and Quick Ratio.
  2. Compute the Debt to Asset Ratio.
  3. Determine the Gross Profit Margin and Net Profit Margin.
  4. Calculate the Return on Investment (ROI) and Return on Equity (ROE).
  5. Discuss the role of debt management in the company's financial strategy.

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