Long-term debt ratio 0.3

Times interest earned 10.0

Current ratio 1.1

Quick ratio 1.0

Cash ratio 0.4

Inventory turnover 3.0

Average collection period 73days

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. ( 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 15.00

DEPRECIATION 25.00

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 & marketable securities $25

Accounts receivable $39

Inventories $31

Total current assets $95

Net property, plant and equipment $30

Total assets $125

Liabilities and shareholders equity

Accounts payable $400 $35

Notes payable 45 50

Total current liabilities $85

Long term debt 25

Shareholders equity 15

Total liabilities and shareholders equity $170 $125