A. What is the debt/equity ratio (as of 11/1/2021)

B. What is Pamela Pigments Return on Assets

Key Numbers from Pamela's Pigments Balance Sheet (11/1/2020) Accounts Receivable 100.000 Inventory 150,000 Total Assets Accounts Payable 100,000 Total Liabilities 400,000 Total Equity 700,000 250,000 Pamela's Pigments Balance Sheet (11/1/2021) Assets Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets 100,000 150,000 50,000 100,000 400,000 Liabilities Current Liabilities Accounts Payable Loans Payable Taxes Payable Total Current Liabilities 200,000 90,000 10,000 300,000 Fixed Assets Equipment 650.000 Less: Accumulated Depreciation (50,000) Total Fixed Assets 600,000 Long Term Liabilities Bank Loan Total Long Term Liabilities Total Liabilities 250.000 250,000 550,000 Other Assets 0 Owners' Equity Contributed Capital Retained Earnings Total Owners' Equity 150,000 200,000 350,000 Total Assets 1,000,000 Pamela's Pigments Income Statement (Year Ended 11/1/2021) Sales Revenue 1,500,000 Less: Sales Returns and Allowances (500,000) Net Sales 1,000,000 Cost of Goods Sold 300,000 Gross Profit 700,000 Operating Expenses Selling Expense 200,000 Administrative Expenses 300,000 Total Operating Expenses 500,000 Operating Income (EBIT) 200,000 Financial Expense 50,000 Earnings Before Taxes 150,000 Income Taxes 50,000 Net Profit 100,000