Sony Corporation Income Statement for the Year Ended March 31, Year 22

• Sales revenue: $9,000,000
• Cost of goods sold: $6,200,000
• Gross margin: $2,800,000
• Operating expenses:
  • Selling expenses: $1,000,000
  • Depreciation expenses: $700,000
• Operating income: $1,100,000
• Nonoperating items: $300,000
• Net income: $800,000

Balance Sheet as of March 31, Year 22

• Assets:
  • Cash: $700,000
  • Accounts receivable: $1,500,000
  • Merchandise inventory: $1,900,000
  • Equipment (less accumulated depreciation): $1,800,000
  • Nonoperating assets: $2,000,000
• Total assets: $7,900,000
• Liabilities:
  • Accounts payable: $800,000
  • Notes payable: $700,000
  • Stockholders' equity: $6,400,000
• Total liabilities and stockholders' equity: $7,900,000

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. Sony Corporation plans to issue $2,000,000 in new equity to fund expansion, expected to increase net income by $500,000. Calculate the new ROA and ROE.