OPQ Corporation’s income statement shows:

• Revenue: $1,000,000
• Cost of Goods Sold: $600,000
• Operating Expenses: $200,000
• Interest Expense: $30,000
• Tax Rate: 25%

Requirements:

1. Calculate the gross profit.
2. Calculate the operating profit.
3. Calculate the net income.
4. Compute the interest coverage ratio.
5. Assess the company’s profitability by comparing the net profit margin to an industry average of 10%.