Facebook, Inc. Income Statement For the Year Ended December 31, Year 2

• Sales revenue: $410,200
• Cost of goods sold: $250,100
• Gross profit: $160,100
• Operating expenses: $90,400
• Administrative expenses: $(10,400)
• Depreciation expense: $20,000
• Operating income: $40,100
• Nonoperating income: $12,200
• Loss on sale of land: $(8,200)
• Net income: $44,100

Balance Sheet As of December 31, Year 2

• Assets:
  • Cash: $35,200
  • Accounts receivable: $70,400
  • Merchandise inventory: $60,300
  • Equipment less accumulated depreciation: $85,800
  • Nonoperating assets: $158,600
  • Total assets: $410,300
• Liabilities:
  • Accounts payable: $25,700
  • Notes payable: $38,400
  • Stockholders’ equity:
    • Common stock: $250,000
    • Retained earnings: $96,200
    • Total liabilities and stockholders’ equity: $410,300

Required:

1. Compute the gross profit margin.
2. Calculate the operating income as a percentage of net sales.
3. Determine the current ratio.
4. Evaluate the ROI for Facebook, Inc.
5. Calculate the debt-to-equity ratio.