Here are the financial details for IBM Software Division for the fiscal year ending December 31, Year 10:

Income Statement:

• Sales revenue: $1,800,000
• Cost of sales: $1,000,000
• Gross profit: $800,000
• Operating expenses: $300,000
• Depreciation: $100,000
• Operating income: $400,000
• Interest expense: $60,000
• Gain on sale of investments: $40,000
• Net income: $380,000

Balance Sheet:

• Cash: $200,000
• Accounts receivable: $300,000
• Inventory: $400,000
• Property, plant, and equipment (net): $600,000
• Total assets: $1,500,000
• Accounts payable: $250,000
• Long-term debt: $350,000
• Stockholders' equity: $900,000
• Total liabilities and equity: $1,500,000

Requirements:

1. Calculate the ROI for IBM Software Division.
2. Evaluate the gross profit margin.
3. Determine the effect of the gain on sale of investments on net income.
4. Compute the quick ratio.
5. Assess the significance of operating income in relation to sales revenue.