General Electric Company Income Statement For the Year Ended December 31, Year 2

• Sales revenue: $370,500
• Cost of goods sold: $200,300
• Gross profit: $170,200
• Operating expenses: $80,400
• Administrative expenses: $(12,400)
• Depreciation expense: $22,000
• Operating income: $80,200
• Nonoperating income: $10,500
• Loss on sale of machinery: $(10,300)
• Net income: $80,400

Balance Sheet As of December 31, Year 2

• Assets:
  • Cash: $40,500
  • Accounts receivable: $80,400
  • Merchandise inventory: $70,300
  • Equipment less accumulated depreciation: $120,700
  • Nonoperating assets: $158,600
  • Total assets: $370,500
• Liabilities:
  • Accounts payable: $35,700
  • Notes payable: $50,600
  • Stockholders’ equity:
    • Common stock: $200,000
    • Retained earnings: $84,200
    • Total liabilities and stockholders’ equity: $370,500

Required:

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