IBM Corp provides the following as of December 31, 2022:

• Balance Sheet:
  • Cash: $6 billion
  • Marketable Securities: $8 billion
  • Accounts Receivable: $10 billion
  • Inventory: $2 billion
  • Total Current Assets: $26 billion
  • Total Assets: $120 billion
  • Accounts Payable: $5 billion
  • Short-term Debt: $3 billion
  • Long-term Debt: $40 billion
  • Shareholders’ Equity: $72 billion
• Income Statement:
  • Revenue: $75 billion
  • Cost of Goods Sold: $40 billion
  • Operating Expenses: $25 billion
  • Interest Expense: $1.5 billion
  • Tax Rate: 22%

Requirements:

1. Calculate the current ratio.
2. Determine the net profit margin.
3. Compute the debt-to-equity ratio.
4. Evaluate the return on equity (ROE).