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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

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:

  1. Calculate the net profit margin for Miller Division.
  2. Determine the return on equity (ROE) for Miller Division.
  3. Compute the quick ratio for Miller Division.
  4. Evaluate the interest coverage ratio for Miller Division.
  5. Assess the Miller Division’s debt to total assets ratio.

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