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