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Below is the financial information for Coca-Cola Beverages Division for the fiscal year ending December 31, Year 11: Income Statement: Sales revenue: $5,000,000 Cost of

Below is the financial information for Coca-Cola Beverages Division for the fiscal year ending December 31, Year 11:

Income Statement:

  • Sales revenue: $5,000,000
  • Cost of goods sold: $3,000,000
  • Gross profit: $2,000,000
  • Operating expenses: $800,000
  • Depreciation: $200,000
  • Operating income: $1,000,000
  • Interest expense: $100,000
  • Non-operating income: $50,000
  • Net income: $950,000

Balance Sheet:

  • Cash: $400,000
  • Accounts receivable: $500,000
  • Inventory: $600,000
  • Property, plant, and equipment (net): $1,000,000
  • Total assets: $2,500,000
  • Accounts payable: $300,000
  • Long-term liabilities: $600,000
  • Stockholders' equity: $1,600,000
  • Total liabilities and equity: $2,500,000

Requirements:

  1. Compute the ROI for Coca-Cola Beverages Division.
  2. Analyze the operating margin.
  3. Determine the impact of interest expense on net income.
  4. Calculate the current ratio.
  5. Discuss the effect of non-operating income on overall financial performance.

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