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

• Sales revenue: $380,700
• Cost of goods sold: $210,400
• Gross profit: $170,300
• Operating expenses: $80,700
• Administrative expenses: $(14,700)
• Depreciation expense: $20,000
• Operating income: $63,300
• Nonoperating income: $13,700
• Loss on sale of equipment: $(11,700)
• Net income: $65,300

Balance Sheet As of December 31, Year 2

• Assets:
  • Cash: $28,700
  • Accounts receivable: $57,400
  • Merchandise inventory: $50,300
  • Equipment less accumulated depreciation: $70,700
  • Nonoperating assets: $173,600
  • Total assets: $380,700
• Liabilities:
  • Accounts payable: $28,600
  • Notes payable: $42,300
  • Stockholders’ equity:
    • Common stock: $220,000
    • Retained earnings: $89,800
    • Total liabilities and stockholders’ equity: $380,700

Required:

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