Nike, Inc. Income Statement For the Year Ended May 31, Year 2

• Sales revenue: $410,300
• Cost of goods sold: $240,200
• Gross profit: $170,100
• Operating expenses: $80,300
• Administrative expenses: $(15,300)
• Depreciation expense: $22,000
• Operating income: $52,800
• Nonoperating income: $12,300
• Loss on sale of equipment: $(10,300)
• Net income: $54,800

Balance Sheet As of May 31, Year 2

• Assets:
  • Cash: $42,300
  • Accounts receivable: $84,200
  • Merchandise inventory: $70,200
  • Equipment less accumulated depreciation: $110,300
  • Nonoperating assets: $103,300
  • Total assets: $410,300
• Liabilities:
  • Accounts payable: $30,200
  • Notes payable: $44,300
  • Stockholders’ equity:
    • Common stock: $200,000
    • Retained earnings: $135,800
    • Total liabilities and stockholders’ equity: $410,300

Required:

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