PepsiCo, Inc Income Statement for the Year Ended December 31, Year 12 Sales revenue $2,500,000 Cost of goods sold $1,500,000 Gross margin $1,000,000 Operating expenses Selling expenses $200,000 Depreciation expenses $150,000 Operating income $650,000 Nonoperating items $70,000 Net income $580,000 Balance Sheet as of December 31, Year 12 Assets Cash $200,000 Accounts receivable $400,000 Merchandise inventory $500,000 Equipment (less accumulated depreciation) $550,000 Nonoperating assets $350,000 Total assets $2,000,000 Liabilities Accounts payable $150,000 Notes payable $100,000 Stockholders' equity $1,750,000 Total liabilities and stockholders' equity $2,000,000 Required a Calculate the gross margin percentage b Calculate the operating margin percentage c Calculate the return on assets (ROA) d Calculate the return on equity (ROE) e If PepsiCo, Inc plans to acquire new machinery for $300,000, which will increase net income by $80,000, calculate the new ROA and ROE

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PepsiCo, Inc. Income Statement for the Year Ended December 31, Year 12 Sales revenue: $2,500,000 Cost of goods sold: $1,500,000 Gross margin: $1,000,000 Operating expenses:

PepsiCo, Inc. Income Statement for the Year Ended December 31, Year 12

Sales revenue: $2,500,000
Cost of goods sold: $1,500,000
Gross margin: $1,000,000
Operating expenses:
- Selling expenses: $200,000
- Depreciation expenses: $150,000
Operating income: $650,000
Nonoperating items: $70,000
Net income: $580,000

Balance Sheet as of December 31, Year 12

Assets:
- Cash: $200,000
- Accounts receivable: $400,000
- Merchandise inventory: $500,000
- Equipment (less accumulated depreciation): $550,000
- Nonoperating assets: $350,000
Total assets: $2,000,000
Liabilities:
- Accounts payable: $150,000
- Notes payable: $100,000
- Stockholders' equity: $1,750,000
Total liabilities and stockholders' equity: $2,000,000

Required:

a. Calculate the gross margin percentage. b. Calculate the operating margin percentage. c. Calculate the return on assets (ROA). d. Calculate the return on equity (ROE). e. If PepsiCo, Inc. plans to acquire new machinery for $300,000, which will increase net income by $80,000, calculate the new ROA and ROE.