A company's assets consist of $200,000 of cash, $400,000 of accounts receivable, $600,000 of inventory, and $1,500,000 of plant and equipment. Its liabilities consist of $100,000 of accounts payable, $150,000 of accruals, and $800,000 of long-term debt. The company's annual sales are $5,000,000, its earnings before interest and taxes are $700,000, and its net income is $300,000. What is the company's return on equity? 1) 18.2% 2) 18.6% 3) 17.4% 4) 19.2% 5) 19.5%