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 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 sold

Selling, general, and administrative expenses 15.00

Depreciation 25.00

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 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 40.00 35

Notes payable 45.00 50

Total current liabilities 85

Long-term debt 25

Shareholders' equity 15

Total liabilities and shareholders' equity 170.00 125