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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:

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

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