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Johnson & Johnson, a healthcare company, provided the following data: Sales Revenue: $2,000,000,000 Variable Costs: $1,200,000,000 Fixed Costs: $500,000,000 Interest Expense: $100,000,000 Depreciation: $80,000,000 Tax
- Johnson & Johnson, a healthcare company, provided the following data:
- Sales Revenue: $2,000,000,000
- Variable Costs: $1,200,000,000
- Fixed Costs: $500,000,000
- Interest Expense: $100,000,000
- Depreciation: $80,000,000
- Tax Rate: 22%
- Total Assets: $1,800,000,000
- Total Liabilities: $1,000,000,000
- Shareholders' Equity: $800,000,000
Requirements:
- Prepare an Income Statement for Johnson & Johnson.
- Calculate the Contribution Margin.
- Determine the Break-Even Point in units (assume the average sales price per unit is $100).
- Calculate the Debt-to-Equity Ratio and Interest Coverage Ratio.
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