The following financial statements pertain to the investment center named Smith Division of ABC Corporation for the year ended December 31, Year 5:

Smith Division Income Statement

Description	Amount ($)
Sales revenue	230,500
Cost of goods sold	112,750
Gross margin	117,750
Operating expenses	58,200
Depreciation expense	12,000
Operating income	47,550
Nonoperating items	5,000
Loss on sale of equipment	(2,500)
Net income	50,050

Smith Division Balance Sheet

Assets	Amount ($)
Cash	18,900
Accounts receivable	55,700
Merchandise inventory	50,600
Equipment less accumulated depreciation	75,000
Total assets	200,200

Liabilities and Stockholders' Equity	Amount ($)
Accounts payable	25,400
Notes payable	12,800
Stockholders' equity	162,000
Total liabilities and stockholders' equity	200,200

Required:

1. Calculate the gross margin percentage for Smith Division.
2. Determine the return on assets (ROA) for Smith Division.
3. Compute the current ratio for Smith Division.
4. Evaluate the debt to equity ratio for Smith Division.
5. Assess the Smith Division’s ability to cover its interest expenses using the interest coverage ratio.