Long-term debt ratio 0.2

Times interest earned 8.0

Current ratio 1.7

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 sold

Selling, general, and administrative expenses 19.00 Depreciation 29.00

Earnings before interest and taxes (EBIT) $

Interest expense

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 $ 29

Accounts receivable This year ? last year 43

Inventories This year ? last year35

Total current assets $ $ This year ? last year107

Net property, plant, and equipment last year34

Total assets $ last year$141

Liabilities and shareholders equity Accounts payable $20.00 $ 15 Notes payable 30.00 35

Total current liabilities This year ? last year 50

Long-term debt This year ? last year 25

Shareholders equity This year ? last year 66

Total liabilities and shareholders equity $190.00 $141