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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:

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

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