Question
The following financial information pertains to the Robinson Division of JKL Corporation for the year ended December 31, Year 6: Robinson Division Income Statement Description
The following financial information pertains to the Robinson Division of JKL Corporation for the year ended December 31, Year 6:
Robinson Division Income Statement
Description | Amount ($) |
Sales revenue | 590,600 |
Cost of goods sold | 332,800 |
Gross margin | 257,800 |
Operating expenses | 163,200 |
Depreciation expense | 30,400 |
Operating income | 64,200 |
Nonoperating items | 14,600 |
Loss on sale of investments | (5,300) |
Net income | 73,500 |
Robinson Division Balance Sheet
Assets | Amount ($) |
Cash | 45,200 |
Accounts receivable | 105,800 |
Merchandise inventory | 92,400 |
Equipment less accumulated depreciation | 150,000 |
Total assets | 393,400 |
Liabilities and Stockholders' Equity | Amount ($) |
Accounts payable | 58,700 |
Notes payable | 27,400 |
Stockholders' equity | 307,300 |
Total liabilities and stockholders' equity | 393,400 |
Required:
- Calculate the gross margin ratio for Robinson Division.
- Determine the return on assets (ROA) for Robinson Division.
- Compute the current ratio for Robinson Division.
- Evaluate the debt to equity ratio for Robinson Division.
- Assess the Robinson Division’s operating margin.
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