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Johnson & Johnson provides the following data for its Consumer Health segment for the year ended December 31, 2023: Income Statement Sales revenue: $70,000,000 Cost
Johnson & Johnson provides the following data for its Consumer Health segment for the year ended December 31, 2023:
Income Statement
- Sales revenue: $70,000,000
- Cost of goods sold: $35,000,000
- Gross margin: $35,000,000
- Operating expenses:
- R&D expenses: $10,000,000
- Marketing expenses: $5,000,000
- Operating income: $20,000,000
- Nonoperating items:
- Interest expense: $2,000,000
- Foreign exchange loss: $500,000
- Net income: $17,500,000
Balance Sheet
- Assets:
- Cash: $5,000,000
- Accounts receivable: $4,000,000
- Inventory: $3,000,000
- Property, plant, and equipment: $20,000,000
- Total assets: $32,000,000
- Liabilities:
- Accounts payable: $2,000,000
- Short-term loans: $3,000,000
- Long-term debt: $10,000,000
- Stockholders' equity: $17,000,000
- Total liabilities and stockholders' equity: $32,000,000
Requirements:
- Calculate the gross profit margin.
- Determine the operating profit margin.
- Compute the return on assets (ROA).
- Calculate the debt-to-equity ratio.
- Find the quick ratio.
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