Walmart Inc. Income Statement for the Year Ended January 31, Year 11

• Sales revenue: $2,000,000
• Cost of goods sold: $1,400,000
• Gross margin: $600,000
• Operating expenses:
  • Selling expenses: $150,000
  • Depreciation expenses: $120,000
• Operating income: $330,000
• Nonoperating items: $60,000
• Net income: $270,000

Balance Sheet as of January 31, Year 11

• Assets:
  • Cash: $180,000
  • Accounts receivable: $350,000
  • Merchandise inventory: $300,000
  • Equipment (less accumulated depreciation): $450,000
  • Nonoperating assets: $220,000
• Total assets: $1,500,000
• Liabilities:
  • Accounts payable: $120,000
  • Notes payable: $100,000
  • Stockholders' equity: $1,280,000
• Total liabilities and stockholders' equity: $1,500,000

Required:

a. Calculate the gross margin percentage. b. Calculate the operating margin percentage. c. Calculate the return on assets (ROA). d. Calculate the return on equity (ROE). e. Walmart Inc. decides to repurchase $200,000 of its stock. Calculate the new ROE if the net income remains the same.