Ford Motor Company Income Statement For the Year Ended December 31, Year 2

• Sales revenue: $470,600
• Cost of goods sold: $270,400
• Gross profit: $200,200
• Operating expenses: $90,600
• R&D expenses: $(18,400)
• Depreciation expense: $22,000
• Operating income: $69,200
• Nonoperating income: $10,600
• Loss on sale of land: $(9,200)
• Net income: $70,600

Balance Sheet As of December 31, Year 2

• Assets:
  • Cash: $50,600
  • Accounts receivable: $100,800
  • Merchandise inventory: $85,300
  • Equipment less accumulated depreciation: $120,900
  • Nonoperating assets: $162,000
  • Total assets: $470,600
• Liabilities:
  • Accounts payable: $40,600
  • Notes payable: $55,300
  • Stockholders’ equity:
    • Common stock: $250,000
    • Retained earnings: $124,700
    • Total liabilities and stockholders’ equity: $470,600

Required:

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