Presented below are the financial statements for Nike Inc.'s Apparel Division for the fiscal year ending December 31, Year 20:

Income Statement:

• Sales revenue: $5,500,000
• Cost of sales: $3,500,000
• Gross profit: $2,000,000
• Operating expenses: $700,000
• Depreciation: $300,000
• Operating income: $1,000,000
• Interest expense: $150,000
• Non-operating income: $50,000
• Net income: $900,000

Balance Sheet:

• Cash: $400,000
• Accounts receivable: $700,000
• Inventory: $800,000
• Property, plant, and equipment (net): $1,100,000
• Total assets: $3,000,000
• Accounts payable: $400,000
• Long-term debt: $600,000
• Stockholders' equity: $2,000,000
• Total liabilities and equity: $3,000,000

Requirements:

1. Calculate the ROI for Nike Inc.'s Apparel Division.
2. Evaluate the gross profit percentage.
3. Determine the effect of non-operating income on net income.
4. Compute the debt to equity ratio.
5. Assess the impact of interest expense on the financial health.