ZAB Plc's Financial Information as of 30 September 2025:

• Balance Sheet:
  • Cash: $140,000
  • Accounts Receivable: $580,000
  • Inventory: $540,000
  • Total Current Assets: $1,260,000
  • Property, Plant, and Equipment: $2,740,000
  • Total Assets: $4,000,000
• Liabilities and Equity:
  • Current Liabilities: $920,000
  • Long-term Debt: $1,780,000
  • Total Liabilities: $2,700,000
  • Equity: $1,300,000
  • Total Liabilities and Equity: $4,000,000

Income Statement for the Nine Months Ended 30 September 2025:

• Sales: $4,000,000
• Cost of Goods Sold: $2,400,000
• Gross Profit: $1,600,000
• Operating Expenses: $700,000
• Operating Profit: $900,000
• Interest Expense: $150,000
• Net Profit Before Tax: $750,000
• Tax @ 25%: $187,500
• Net Profit: $562,500

Requirements:

1. Calculate the current ratio.
2. Determine the debt-to-equity ratio.
3. Compute the gross profit margin.
4. Evaluate the net profit margin.
5. Assess the return on equity (ROE).