Long-term debt ratio

0.1

Times interest earned

10.0

Current ratio

1.6

Quick ratio

1.0

Cash ratio

0.6

Inventory turnover

3.0

Average collection period

73

days

Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values.(Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.)

Torrid Romance Publishers has total receivables of $2,840, which represents 20 days' sales. Total assets are $73,000. The firm's operating profit margin is 5%. Find the firm's ROA and asset turnover ratio.(Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Long-term debt ratio

0.1

Times interest earned

10.0

Current ratio

1.6

Quick ratio

1.0

Cash ratio

0.6

Inventory turnover

3.0

Average collection period

73

days

Use the above information from the tables to work out the following missing entries, and then calculate the company's return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values.(Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.)

INCOME STATEMENT(Figures in $ millions)

Net sales

Cost of goods soldSelling, general, and administrative expenses27.00

Depreciation37.00

Earnings before interest and taxes (EBIT)

Interest expense

Income before taxTax (35% of income before tax)

Net income

BALANCE SHEET

(Figures in $ millions)

This Year

Last Year

Assets

Cash and marketable securities

$37

Accounts receivable

51

Inventories

43

Total current assets

$131

Net property, plant, and equipment

42

Total assets

$173

Liabilities and shareholders' equity

Accounts payable

$25.00

$20

Notes payable

40.00

45

Total current liabilities

$65

Long-term debt

18

Shareholders' equity

90

Total liabilities and shareholders' equity

$275.00

$173