IBM Corporation has provided financial statements for its Technology Services segment for the year ending December 31, Year 2.

Income Statement for Year Ended December 31, Year 2

• Revenue: $800,000
• Cost of services: $480,000
• Gross profit: $320,000
• Operating expenses: $140,000
• Research and development expenses: $60,000
• Depreciation expense: $40,000
• Operating income: $80,000
• Interest expense: $20,000
• Other income: $10,000
• Net income: $70,000

Balance Sheet as of December 31, Year 2 Assets

• Cash: $200,000
• Accounts receivable: $220,000
• Inventory: $180,000
• Property and equipment (net): $400,000
• Other assets: $100,000
• Total assets: $1,100,000

Liabilities

• Accounts payable: $100,000
• Short-term debt: $80,000
• Long-term debt: $300,000
• Stockholders' equity: $620,000
• Total liabilities and stockholders' equity: $1,100,000

Required:

1. Compute the gross profit margin.
2. Calculate the operating profit margin.
3. Determine the return on assets (ROA).
4. Find the current ratio.
5. Compute the total debt to equity ratio.