MEGAFRAME COMPUTER COMPANY
Balance Sheet
As of December 31
ASSETS
Cash	$	50,000
Accounts receivable		70,000
Inventory		110,000
Net plant and equipment		220,000
Total assets	$	450,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	70,000
Accrued expenses		50,000
Long-term debt		130,000
Common stock		70,000
Paid-in capital		40,000
Retained earnings		90,000
Total liabilities and stockholders' equity	$	450,000

MEGAFRAME COMPUTER COMPANY
Income Statement
For the year ended December 31
Sales (all on credit)	$	875,000
Cost of goods sold		600,000
Gross profit	$	275,000
Sales and administrative expenses		30,000
Depreciation		55,000
Operating profit	$	190,000
Interest expense		25,000
Profit before taxes	$	165,000
Taxes (30%)		49,500
Net income	$	115,500

Calculate the following ratios:

1. Debt Ratio
2. Total Asset Turnover
3. Average Collection Period
4. Price to Earnings ratio if the Market Price is $110 USD today and number of shares issues are 500,000.
5. Operating Return on Assets