Coca-Cola Company Income Statement for the Year Ended December 31, Year 13

• Sales revenue: $3,000,000
• Cost of goods sold: $1,800,000
• Gross margin: $1,200,000
• Operating expenses:
  • Selling expenses: $250,000
  • Depreciation expenses: $180,000
• Operating income: $770,000
• Nonoperating items: $90,000
• Net income: $680,000

Balance Sheet as of December 31, Year 13

• Assets:
  • Cash: $220,000
  • Accounts receivable: $500,000
  • Merchandise inventory: $400,000
  • Equipment (less accumulated depreciation): $650,000
  • Nonoperating assets: $330,000
• Total assets: $2,100,000
• Liabilities:
  • Accounts payable: $200,000
  • Notes payable: $150,000
  • Stockholders' equity: $1,750,000
• Total liabilities and stockholders' equity: $2,100,000

Required:

a. Calculate the gross margin percentage. b. Calculate the operating margin percentage. c. Calculate the return on assets (ROA). d. Calculate the return on equity (ROE). e. Coca-Cola Company is planning a new marketing campaign costing $100,000, expected to increase net income by $30,000. Calculate the new ROA and ROE.