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Given the information below, calculate- 1. Debt-EquityRatio(Bookvalues) 2.ROE(usebookvalueforequity). XYZ BalanceSheet Assets Currentassets: 2020 2021 change Cash 1,500,000 1,800,000 300,000 Investments 1,000,000 1,025,000 25,000 Inventories 112,000,000

Given the information below, calculate- 1. Debt-EquityRatio(Bookvalues) 2.ROE(usebookvalueforequity).

XYZ

BalanceSheet

Assets

Currentassets:

2020

2021

change

Cash

1,500,000

1,800,000

300,000

Investments

1,000,000

1,025,000

25,000

Inventories

112,000,000

127,000,000

15,000,000

Accountsreceivable

11,950,000

12,500,000

550,000

Pre-paidexpenses

2,500,000

2,650,000

150,000

Other

0

0

Totalcurrentassets

128,950,000

144,975,000

16,025,000

Fixedassets:

2020

2021

change

Propertyandequipment

155,000,000

172,500,000

17,500,000

Leaseholdimprovements

0

0

0

Equityandotherinvestments

48,000,000

57,000,000

9,000,000

Totalfixedassets

203,000,000

229,500,000

26,500,000

Otherassets:

2020

2021

change

Goodwill

85,000,000

70,000,000

-15,000,000

Totalotherassets

85,000,000

70,000,000

-15,000,000

Totalassets

416,950,000

444,475,000

27,525,000

Liabilitiesandowner'sequity

Currentliabilities:

2020

2021

change

Accountspayable

38,500,000

43,200,000

4,700,000

Accruedwages

75,000,000

80,500,000

5,500,000

Accruedcompensation

10,000,000

10,255,000

255,000

Incometaxespayable

4,024,000

4,697,000

673,000

currentportionofLT debt

5,000,000

5,350,000

350,000

Other

0

0

0

Totalcurrentliabilities

132,524,000

144,002,000

11,478,000

Long-termliabilities:

2020

2021

change

Longtermdebt

115,000,000

130,000,000

15,000,000

Totallong-termliabilities

115,000,000

130,000,000

15,000,000

Owner'sequity:

2020

2021

change

Commonstock

122,000,000

122,000,000

0

Preferredstock

16,725,000

16,725,000

0

Accumulatedretainedearnings

30,701,000

31,748,000

1,047,000

Totalowner'sequity

169,426,000

170,473,000

1,047,000

Totalliabilitiesandowner'sequity

416,950,000

444,475,000

27,525,000

Financial Statements in '000s of U.S. Dollars

Revenue

Gross Sales 282,000 Less: Sales Returns and Allowances 2,500

Net Sales 279,500

Cost of Goods Sold

Beginning Inventory 7,500

Add: Purchases 4,500

Freight-in -

Direct Labor 75,000

Indirect Expenses 15,000

Inventory Available 102,000

Less: Ending Inventory

Cost of Goods Sold 102,000

Gross Profit (Loss) 145,500

Expenses

Advertising 18,500

Amortization -

Bad Debts 5,000

Depreciation 500

Dues and Subscriptions -

Employee Benefit Programs 18,750

Insurance 2,500

Interest 10,350

Legal and Professional Fees 100

Licenses and Fees -

Miscellaneous 10

Office Expense 100

Payroll Taxes 5,625

Postage 3

Rent - Repairs and Maintenance 5,000

Supplies 2,000

Telephone 120

Travel 1,750

Utilities 70,000

Vehicle Expenses 450

Wages 25,000

Total Expenses 164,758

Net Operating Income 12,742 Other Income

Gain (Loss) on Sale of Assets -

Interest Income 1,000

Total Other Income 1,000

Taxes 4,697

Net Income (Loss) 9,045

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