Microsoft Corporation has released the financial data for its Gaming segment for the year ended June 30,
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Question:
Microsoft Corporation has released the financial data for its Gaming segment for the year ended June 30, Year 5.
Income Statement for Year Ended June 30, Year 5
- Revenue: $400,000
- Cost of revenue: $220,000
- Gross profit: $180,000
- Operating expenses: $70,000
- Research and development expenses: $30,000
- Depreciation expense: $20,000
- Operating income: $60,000
- Interest expense: $10,000
- Other income: $5,000
- Net income: $55,000
Balance Sheet as of June 30, Year 5 Assets
- Cash: $80,000
- Accounts receivable: $90,000
- Inventory: $100,000
- Property, plant, and equipment (net): $200,000
- Other assets: $30,000
- Total assets: $500,000
Liabilities
- Accounts payable: $35,000
- Short-term debt: $25,000
- Long-term debt: $70,000
- Stockholders' equity: $370,000
- Total liabilities and stockholders' equity: $500,000
Required:
- Calculate the gross profit margin.
- Determine the operating income percentage.
- Compute the return on assets (ROA).
- Find the current ratio.
- Calculate the debt to equity ratio.
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