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:

Debt Ratio

Total Asset Turnover

Average Collection Period

Price to Earnings ratio if the Market Price is $110 USD today and number of shares issues are 500,000.

Operating Return on Assets