Here are the financial statements for the Miller Division of KLM Corporation for the year ended December
Question:
Here are the financial statements for the Miller Division of KLM Corporation for the year ended December 31, Year 15:
Miller Division Income Statement
Description | Amount ($) |
Sales revenue | 1,450,900 |
Cost of goods sold | 865,500 |
Gross margin | 585,400 |
Operating expenses | 355,500 |
Depreciation expense | 75,700 |
Operating income | 154,200 |
Nonoperating items | 48,400 |
Gain on sale of investments | 15,200 |
Net income | 217,800 |
Miller Division Balance Sheet
Assets | Amount ($) |
Cash | 140,200 |
Accounts receivable | 295,400 |
Merchandise inventory | 245,300 |
Equipment less accumulated depreciation | 400,000 |
Total assets | 1,080,900 |
Liabilities and Stockholders' Equity | Amount ($) |
Accounts payable | 200,200 |
Notes payable | 90,400 |
Stockholders' equity | 790,300 |
Total liabilities and stockholders' equity | 1,080,900 |
Required:
- Calculate the net profit margin for Miller Division.
- Determine the return on equity (ROE) for Miller Division.
- Compute the quick ratio for Miller Division.
- Evaluate the interest coverage ratio for Miller Division.
- Assess the Miller Division’s debt to total assets ratio.