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Google LLC (Alphabet Inc.) reports the following figures for its Google Services segment for the year ended December 31, 2023: Income Statement Sales revenue: $150,000,000

Google LLC (Alphabet Inc.) reports the following figures for its Google Services segment for the year ended December 31, 2023:

Income Statement

  • Sales revenue: $150,000,000
  • Cost of goods sold: $75,000,000
  • Gross margin: $75,000,000
  • Operating expenses:
    • R&D expenses: $20,000,000
    • Sales and marketing expenses: $15,000,000
  • Operating income: $40,000,000
  • Nonoperating items:
    • Interest expense: $3,000,000
    • Loss on investment: $1,000,000
  • Net income: $36,000,000

Balance Sheet

  • Assets:
    • Cash: $20,000,000
    • Accounts receivable: $10,000,000
    • Inventory: $15,000,000
    • Property, plant, and equipment: $55,000,000
  • Total assets: $100,000,000
  • Liabilities:
    • Accounts payable: $5,000,000
    • Short-term loans: $10,000,000
    • Long-term debt: $20,000,000
  • Stockholders' equity: $65,000,000
  • Total liabilities and stockholders' equity: $100,000,000

Requirements:

  1. Calculate the gross profit margin.
  2. Determine the operating profit margin.
  3. Compute the return on equity (ROE).
  4. Calculate the current ratio.
  5. Find the times interest earned ratio.

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