Below are the financial statements for the Johnson & Johnson Investment Division for the year ended December 31, Year 2:

Income Statement:

• Sales revenue: $150,000
• Cost of goods sold: $70,000
• Gross margin: $80,000
• Operating expenses: $20,000
• Depreciation expense: $10,000
• Operating income: $50,000
• Non-operating items: $5,000
• Loss on sale of equipment: $2,000
• Net income: $43,000

Balance Sheet:

• Cash: $15,000
• Accounts receivable: $20,000
• Merchandise inventory: $30,000
• Equipment less accumulated depreciation: $40,000
• Non-operating assets: $10,000
• Total assets: $115,000
• Accounts payable: $15,000
• Notes payable: $5,000
• Stockholders' equity: $95,000
• Total liabilities and stockholder’s equity: $115,000

Requirements:

1. Calculate the Return on Investment (ROI) for the Johnson & Johnson Investment Division.
2. Determine the gross margin percentage.
3. Compute the operating income percentage.
4. Assess the net income percentage.
5. Discuss the implications of the non-operating items on the net income.