Fred Fernando from Fantastic Frames Pty Ltd has invested $90,000 in frame formation equipment to form frames in-house rather than outsourcing this aspect of the business.

Fred has provided the financial data below for before and after his investment:

	Before investment	After Investment
Total Assets (average)	399,605	464,655
Total Liabilities (average)	204,700	189,475
Average Shareholders Equity	194,905	275,180
Profit	114,800	117,775

Required:

Calculate (to 2 decimal places) the following ratios based on the above data:

Note: Include only numbers and decimal places in your ratio responses

	Before	After
Return on Assets	%	%
Return on Equity	%	%
Debt to Assets Ratio	%	%
Debt to Equity Ratio	%	%

Is Fantastic Frames more reliant on debt financing before or after the investment? (Before/After)

Based on the financial results, would Fred be happy with the investment? (Yes/No)