Coca-Cola Company Income Statement For the Year Ended December 31, Year 2

• Sales revenue: $220,500
• Cost of goods sold: $120,300
• Gross profit: $100,200
• Operating expenses: $40,400
• R&D expenses: $(12,400)
• Depreciation expense: $15,000
• Operating income: $37,800
• Nonoperating income: $6,300
• Loss on sale of equipment: $(4,300)
• Net income: $39,800

Balance Sheet As of December 31, Year 2

• Assets:
  • Cash: $18,400
  • Accounts receivable: $35,600
  • Merchandise inventory: $25,300
  • Equipment less accumulated depreciation: $45,800
  • Nonoperating assets: $95,800
  • Total assets: $220,900
• Liabilities:
  • Accounts payable: $12,500
  • Notes payable: $22,400
  • Stockholders’ equity:
    • Common stock: $125,000
    • Retained earnings: $60,100
    • Total liabilities and stockholders’ equity: $220,900

Required:

1. Calculate the gross profit margin.
2. Determine the current ratio.
3. Compute the debt-to-equity ratio.
4. Evaluate the ROI for Coca-Cola Company.
5. Calculate the operating margin.