The following financial data relate to the Thompson Division of DEF Corporation for the year ended December 31, Year 3:

Thompson Division Income Statement

Description	Amount ($)
Sales revenue	405,200
Cost of goods sold	248,100
Gross margin	157,100
Operating expenses	98,700
Depreciation expense	16,300
Operating income	42,100
Nonoperating items	7,500
Loss on sale of investments	(4,200)
Net income	45,400

Thompson Division Balance Sheet

Assets	Amount ($)
Cash	28,300
Accounts receivable	75,400
Merchandise inventory	62,800
Equipment less accumulated depreciation	110,000
Total assets	276,500

Liabilities and Stockholders' Equity	Amount ($)
Accounts payable	40,200
Notes payable	19,300
Stockholders' equity	217,000
Total liabilities and stockholders' equity	276,500

Required:

1. Calculate the gross margin ratio for Thompson Division.
2. Determine the return on assets (ROA) for Thompson Division.
3. Compute the current ratio for Thompson Division.
4. Evaluate the debt to equity ratio for Thompson Division.
5. Assess the Thompson Division’s operating margin.