The financial data for Johnson & Johnson for the year ending December 31, 2023, is as follows:

• Total revenue: $10,000,000
• Cost of goods sold: $6,000,000
• Gross profit: $4,000,000
• Operating expenses: $2,500,000
• Net income: $1,000,000
• Dividends declared: $300,000
• Cash: $900,000
• Accounts receivable: $700,000
• Inventory: $500,000
• Total assets: $5,000,000
• Total liabilities: $2,800,000
• Common stock: $2,500,000
• Retained earnings: $1,200,000

Instructions:

1. Prepare an income statement for the year ended December 31, 2023.
2. Prepare a statement of retained earnings for the year.
3. Calculate the earnings per share if there are 200,000 shares outstanding.
4. Determine the current ratio.
5. Compute the return on assets (ROA).