BALANCE SHEET Cash S 1,000.0 $1,000.0 Accounts payable Notes payable Accts. Receivable 2,000.0 3,000.0 1,000.0 500.0 Inventories Total current assets $5,000.0 $3,500.0 5,000.0 $8,500.0 Accruals Total current liabilities Long-term bonds Total debt Common stock (5,000 shares) Retained earnings Total common equity Total liabilities & equity 500.0 11,000.0 15,000.0 $11,500.0 Net plant & equip. Total assets $20,000.0 $20,000.0 $ 10,000.0 INCOME STATEMENT Net sales Operating costs (Cost of Goods Sold) 6,000.0 EBIT $ 4,000.0 600.0 Less: Interest $ 3,400.0 Less: Taxes 1,000.0 Net income $ 2,400.0 Calculate the following financial ratio for this company: Return on Equity A. 48.0% OB. 47.9% O C. 12.0% OD. 20.9% E. 24.0% O F. 19.9% BALANCE SHEE Cash S 1,000.0 $1,000.0 Accounts payable Notes payable Accts. Receivable 2,000.0 3,000.0 1,000.0 500.0 Inventories Total current assets $5,000.0 $3,500.0 5,000.0 Accruals Total current liabilities Long-term bonds Total debt Common stock (5,000 shares) Retained earnings Total common equity Total liabilities & equity $8,500.0 500.0 11,000.0 Net plant & equip 15,000.0 $11,500.0 Total assets $20,000.0 $20,000.0 INCOME STATEMENT Net sales Operating costs (Cost of Goods Sold) $ 10,000.0 6,000.0 EBIT $ 4,000.0 Less: Interest 600.0 EBT $ 3,400.0 Less: Taxes 1,000.0 Net income $ 2,400.0 Calculate the following financial ratio for this company: Times Interest Earned A. 33.33 B. 16.67 C. 4.00 D.5.67 O E. 1.67 O F. 6.67