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You are a financial analyst for Whites XYZ Corporation, and the management has tasked you...

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Accounting

You are a financial analyst for Whites XYZ Corporation, and the management has tasked you with conducting a financial analysis and developing a comprehensive financial plan for the upcoming fiscal year. Below are some key financial data for the current year: Net Income: $2,500,000 Total Assets: $10,000,000 Total Liabilities: $4,000,000 Total Equity: $6,000,000 Earnings Before Interest and Taxes (EBIT): $3,200,000 Interest Expense: $400,000 Dividends Paid: $600,000 Tax Rate: 30%You are asked to:1. Calculate the following financial ratios: Return on Assets (ROA) Return on Equity (ROE) Debt-to-Equity Ratio Earnings Per Share (EPS)2. Analyze the company's liquidity, solvency, and profitability based on the calculated ratios.3. Develop a financial plan for the next fiscal year, considering potential strategies to improve financial performance. Provide recommendations on areas that require attention, such as cost-cutting measures, revenue enhancement, or changes in financing structure.

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