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 s 450,000 stockholders' equity MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31 Sales (all on credit) s 875,000 Cost of goods sold 600,000 Gross profit 275.000 Sales and administrative 30,000 expenses Depreciation 55.000 Operating profit $ 190,000 Interest expense 25,000 Profit before taxes 165,000 Taxes (30%) 49,500 Net income s 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