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Here are the financial statements for the White Division of QRS Corporation for the year ended December 31, Year 17: White Division Income Statement Description

Here are the financial statements for the White Division of QRS Corporation for the year ended December 31, Year 17:

White Division Income Statement

Description

Amount ($)

Sales revenue

1,650,900

Cost of goods sold

1,000,500

Gross margin

650,400

Operating expenses

415,500

Depreciation expense

85,700

Operating income

149,200

Nonoperating items

58,400

Gain on sale of equipment

17,200

Net income

224,800

White Division Balance Sheet

Assets

Amount ($)

Cash

170,200

Accounts receivable

345,400

Merchandise inventory

275,300

Equipment less accumulated depreciation

450,000

Total assets

1,241,900


Liabilities and Stockholders' Equity

Amount ($)

Accounts payable

240,200

Notes payable

108,400

Stockholders' equity

893,300

Total liabilities and stockholders' equity

1,241,900

Required:

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

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