Question
Here are the financial statements for the Moore Division of ABC Corporation for the year ended December 31, Year 21: Moore Division Income Statement Description
Here are the financial statements for the Moore Division of ABC Corporation for the year ended December 31, Year 21:
Moore Division Income Statement
Description | Amount ($) |
Sales revenue | 2,050,900 |
Cost of goods sold | 1,320,500 |
Gross margin | 730,400 |
Operating expenses | 525,500 |
Depreciation expense | 110,700 |
Operating income | 94,200 |
Nonoperating items | 78,400 |
Gain on sale of investments | 22,200 |
Net income | 194,800 |
Moore Division Balance Sheet
Assets | Amount ($) |
Cash | 230,200 |
Accounts receivable | 445,400 |
Merchandise inventory | 340,300 |
Equipment less accumulated depreciation | 550,000 |
Total assets | 1,565,900 |
Liabilities and Stockholders' Equity | Amount ($) |
Accounts payable | 320,200 |
Notes payable | 148,400 |
Stockholders' equity | 1,097,300 |
Total liabilities and stockholders' equity | 1,565,900 |
Required:
- Calculate the net profit margin for Moore Division.
- Determine the return on equity (ROE) for Moore Division.
- Compute the quick ratio for Moore Division.
- Evaluate the interest coverage ratio for Moore Division.
- Assess the Moore Division’s debt to total assets ratio.
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