IBM Income Statement For the Year Ended December 31, Year 2

• Sales revenue: $620,300
• Cost of goods sold: $400,400
• Gross profit: $219,900
• Operating expenses: $100,300
• Administrative expenses: $(22,300)
• Depreciation expense: $30,000
• Operating income: $66,600
• Nonoperating income: $18,300
• Loss on sale of land: $(15,300)
• Net income: $69,600

Balance Sheet As of December 31, Year 2

• Assets:
  • Cash: $60,300
  • Accounts receivable: $120,400
  • Merchandise inventory: $110,200
  • Equipment less accumulated depreciation: $160,300
  • Nonoperating assets: $169,100
  • Total assets: $620,300
• Liabilities:
  • Accounts payable: $50,400
  • Notes payable: $70,300
  • Stockholders’ equity:
    • Common stock: $360,000
    • Retained earnings: $139,600
    • Total liabilities and stockholders’ equity: $620,300

Required:

1. Calculate the ROI for IBM.
2. Compute the gross profit margin.
3. Determine the current ratio.
4. Evaluate the debt-to-equity ratio.
5. Calculate the operating margin.