Question
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:
- Calculate the net profit margin for White Division.
- Determine the return on equity (ROE) for White Division.
- Compute the quick ratio for White Division.
- Evaluate the interest coverage ratio for White Division.
- Assess the White Division’s debt to total assets ratio.
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