PepsiCo, Inc. Income Statement For the Year Ended December 31, Year 2

• Sales revenue: $320,400
• Cost of goods sold: $180,300
• Gross profit: $140,100
• Operating expenses: $70,400
• Administrative expenses: $(10,400)
• Depreciation expense: $20,000
• Operating income: $39,300
• Nonoperating income: $10,300
• Loss on sale of equipment: $(5,300)
• Net income: $44,300

Balance Sheet As of December 31, Year 2

• Assets:
  • Cash: $25,200
  • Accounts receivable: $50,400
  • Merchandise inventory: $40,300
  • Equipment less accumulated depreciation: $60,500
  • Nonoperating assets: $145,300
  • Total assets: $321,700
• Liabilities:
  • Accounts payable: $20,200
  • Notes payable: $32,300
  • Stockholders’ equity:
    • Common stock: $160,000
    • Retained earnings: $109,200
    • Total liabilities and stockholders’ equity: $321,700

Required:

1. Compute the gross profit margin.
2. Calculate the operating income as a percentage of net sales.
3. Determine the current ratio.
4. Evaluate the ROI for PepsiCo, Inc.
5. Calculate the debt-to-equity ratio.