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Boeing has provided the following financial data for its Commercial Airplanes segment for the fiscal year ending December 31, Year 6. Income Statement for Year

Boeing has provided the following financial data for its Commercial Airplanes segment for the fiscal year ending December 31, Year 6.

Income Statement for Year Ended December 31, Year 6

  • Sales revenue: $1,800,000
  • Cost of goods sold: $1,080,000
  • Gross profit: $720,000
  • Operating expenses: $360,000
  • Research and development expenses: $180,000
  • Depreciation expense: $90,000
  • Operating income: $90,000
  • Interest expense: $70,000
  • Other income: $50,000
  • Net income: $70,000

Balance Sheet as of December 31, Year 6 Assets

  • Cash: $800,000
  • Accounts receivable: $820,000
  • Inventory: $680,000
  • Property, plant, and equipment (net): $1,500,000
  • Other assets: $400,000
  • Total assets: $4,200,000

Liabilities

  • Accounts payable: $550,000
  • Short-term debt: $500,000
  • Long-term debt: $1,300,000
  • Stockholders' equity: $1,850,000
  • Total liabilities and stockholders' equity: $4,200,000

Required:

  1. Compute the gross profit margin.
  2. Calculate the operating profit margin.
  3. Determine the return on assets (ROA).
  4. Find the current ratio.
  5. Compute the total debt to equity ratio.

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