The following financial data pertains to Berkshire Hathaway for the fiscal year ending December 31, 2023:

• Sales: $11,500,000
• Cost of goods sold: $6,500,000
• Gross profit: $5,000,000
• Operating expenses: $3,000,000
• Net income: $1,500,000
• Cash: $1,000,000
• Accounts receivable: $800,000
• Inventory: $600,000
• Property, plant, and equipment: $4,000,000
• Accumulated depreciation: $700,000
• Accounts payable: $700,000
• Common stock: $4,500,000
• Retained earnings: $1,500,000

Instructions:

1. Prepare an income statement for the year ended December 31, 2023.
2. Prepare a balance sheet as of December 31, 2023.
3. Calculate the gross profit margin.
4. Determine the debt-to-equity ratio.
5. Compute the net profit margin.