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Long-term debt ratio 0.1 Times interest earned 8.0 Current ratio 1.4 Quick ratio 1.0 Cash ratio 0.4 Inventory turnover 4.0 Average collection period 73 days

Long-term debt ratio 0.1
Times interest earned 8.0
Current ratio 1.4
Quick ratio 1.0
Cash ratio 0.4
Inventory turnover 4.0
Average collection period 73 days

Use the above information from the tables to work out the following missing entries, and then calculate the companys 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.)

Long-term debt ratio 0.1
Times interest earned 8.0
Current ratio 1.4
Quick ratio 1.0
Cash ratio 0.4
Inventory turnover 4.0
Average collection period 73 days

Use the above information from the tables to work out the following missing entries, and then calculate the companys 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
Selling, general, and admin exp 25.00
Depreciation 35.00
Earnings before interest and taxes
Income Before tax
Tax (35% of income before tax)
Net Income

BALANCE SHEET
(Figures in $ millions)
This Year Last Year
Assets
Cash and marketable securities $35
Accounts receivable 49
Inventories 41
Total current assets $125
Net property, plant, and equipment 40
Total assets $165
Liabilities and shareholders equity
Accounts payable $15.00 $10
Notes payable 20.00 25
Total current liabilities $35
Long-term debt 23
Shareholders equity 107
Total liabilities and shareholders equity $270.00 $165

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