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Walmart Inc. has provided financial statements for its International segment for the year ended January 31, Year 3. Income Statement for Year Ended January 31,

Walmart Inc. has provided financial statements for its International segment for the year ended January 31, Year 3.

Income Statement for Year Ended January 31, Year 3

  • Net sales: $500,000
  • Cost of goods sold: $300,000
  • Gross profit: $200,000
  • Operating expenses: $80,000
  • Selling expenses: $20,000
  • Depreciation expense: $10,000
  • Operating income: $90,000
  • Interest expense: $15,000
  • Other income: $5,000
  • Net income: $80,000

Balance Sheet as of January 31, Year 3 Assets

  • Cash: $100,000
  • Accounts receivable: $120,000
  • Inventory: $150,000
  • Property, plant, and equipment (net): $250,000
  • Other assets: $50,000
  • Total assets: $670,000

Liabilities

  • Accounts payable: $50,000
  • Short-term debt: $40,000
  • Long-term debt: $100,000
  • Stockholders' equity: $480,000
  • Total liabilities and stockholders' equity: $670,000

Required:

  1. Compute the gross profit margin.
  2. Calculate the operating income percentage.
  3. Determine the return on equity (ROE).
  4. Find the quick ratio.
  5. Compute the total debt to equity ratio.

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