Question: Amazon.com, Inc. has shared the following information for its North America segment for the year ended December 31, 2023: Income Statement Sales revenue: $300,000,000 Cost

Amazon.com, Inc. has shared the following information for its North America segment for the year ended December 31, 2023:

Income Statement

  • Sales revenue: $300,000,000
  • Cost of goods sold: $210,000,000
  • Gross margin: $90,000,000
  • Operating expenses:
    • Fulfillment expenses: $30,000,000
    • Technology and content expenses: $20,000,000
    • Marketing expenses: $10,000,000
  • Operating income: $30,000,000
  • Nonoperating items:
    • Interest expense: $5,000,000
    • Loss on disposal of assets: $2,000,000
  • Net income: $23,000,000

Balance Sheet

  • Assets:
    • Cash: $15,000,000
    • Accounts receivable: $10,000,000
    • Inventory: $25,000,000
    • Property and equipment: $50,000,000
  • Total assets: $100,000,000
  • Liabilities:
    • Accounts payable: $8,000,000
    • Short-term loans: $12,000,000
    • Long-term debt: $30,000,000
  • Stockholders' equity: $50,000,000
  • Total liabilities and stockholders' equity: $100,000,000

Requirements:

  1. Calculate the gross profit margin.
  2. Determine the operating profit margin.
  3. Compute the return on assets (ROA).
  4. Calculate the debt ratio.
  5. Find the interest coverage ratio.

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