The following financial information applies to Apple Inc. Retail Division for the fiscal year ending September 30, Year 5:

Income Statement:

• Sales revenue: $2,500,000
• Cost of sales: $1,500,000
• Gross margin: $1,000,000
• Operating expenses: $200,000
• Depreciation: $100,000
• Operating income: $700,000
• Interest expense: $50,000
• Loss on sale of assets: $25,000
• Net income: $625,000

Balance Sheet:

• Cash: $200,000
• Accounts receivable: $300,000
• Inventory: $400,000
• Property, plant, and equipment (net): $600,000
• Total assets: $1,500,000
• Accounts payable: $200,000
• Long-term debt: $300,000
• Stockholders' equity: $1,000,000
• Total liabilities and equity: $1,500,000

Requirements:

1. Calculate the ROI for Apple Inc. Retail Division.
2. Analyze the gross margin percentage.
3. Determine the impact of operating expenses on operating income.
4. Compute the interest coverage ratio.
5. Discuss the significance of the net income in relation to total assets.