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