###Question 14###

Sony Electronics Division

Here are the financial details for Sony Electronics Division for the fiscal year ending December 31, Year 15:

Income Statement:

• Sales revenue: $6,000,000
• Cost of sales: $4,000,000
• Gross profit: $2,000,000
• Operating expenses: $1,000,000
• Depreciation: $400,000
• Operating income: $600,000
• Interest expense: $150,000
• Loss on sale of equipment: $25,000
• Net income: $425,000

Balance Sheet:

• Cash: $500,000
• Accounts receivable: $700,000
• Inventory: $800,000
• Property, plant, and equipment (net): $1,000,000
• Total assets: $3,000,000
• Accounts payable: $500,000
• Long-term liabilities: $800,000
• Stockholders' equity: $1,700,000
• Total liabilities and equity: $3,000,000

Requirements:

1. Compute the ROI for Sony Electronics Division.
2. Analyze the gross profit margin.
3. Determine the impact of operating expenses on operating income.
4. Calculate the current ratio.
5. Assess the significance of the net income in relation to total assets.