1. Four years ago, Ship Express purchased a mailing machine at a cost of $218,000. This equipment is currently valued at $97,400 on today's balance sheet but could actually be sold for $92,900. This is the only fixed asset the firm owns. Net working capital is $41,300 and long-term debt is $102,800. What is the book value of shareholders' equity?

2. An increase in which of the following will increase the return on equity, all else constant?

I. Total asset turnover.

II. Net income.

III. Total assets.

IV. Debt-equity ratio.

		I only.
		I and II only.
		I, II, and IV only.
		I, II, and III only.
		I, II, III, and IV.