Amazon.com, Inc. Income Statement For the Year Ended December 31, Year 2

• Net sales: $280,500
• Cost of goods sold: $160,300
• Gross profit: $120,200
• Operating expenses: $55,400
• Administrative expenses: $(8,400)
• Depreciation expense: $18,000
• Operating income: $45,200
• Other expenses: $7,200
• Gain on sale of equipment: $4,100
• Net income: $42,100

Balance Sheet As of December 31, Year 2

• Assets:
  • Cash: $22,500
  • Accounts receivable: $48,300
  • Merchandise inventory: $35,100
  • Equipment less accumulated depreciation: $56,300
  • Nonoperating assets: $118,600
  • Total assets: $280,800
• Liabilities:
  • Accounts payable: $15,700
  • Notes payable: $28,400
  • Stockholders’ equity:
    • Common stock: $150,000
    • Retained earnings: $86,700
    • Total liabilities and stockholders’ equity: $280,800

Required:

1. Calculate the gross profit margin.
2. Determine the operating income as a percentage of net sales.
3. Compute the current ratio.
4. Evaluate the ROI for Amazon.com, Inc.
5. Calculate the debt-to-equity ratio.