MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31 ASSETS Cash Accounts receivable Inventory Net plant and equipment Total assets $ 50,000 70,000 110,000 220,000 450,000 $ 70,000 50,000 130,000 70,000 40,000 90,000 450,000 LIABILITIES AND STOCKHOLDERS EQUITY Accounts payable Accrued expenses Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and $ stockholders' equity MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31 Sales (all on credit) $ Cost of goods sold Gross profit $ Sales and administrative expenses Depreciation Operating profit $ Interest expense Profit before taxes $ Taxes (30%) Net income $ 875,000 600,000 275,000 30,000 55,000 190,000 25,000 165,000 49,500 115,500 $ $ 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