OPA Inc. has provided the following financial information:

Cash: $85,000

Accounts Receivable: $50,000

Inventory: $27,000

Accounts Payable: $15,000

Short-term Loans: $18,000

Long-term Debt: $35,000

Common Stock: $65,000

Retained Earnings (beginning of the year): $40,000

Sales Revenue: $125,000

Cost of Goods Sold: $60,000

Operating Expenses: $28,000

Interest Expense: $4,000

Income Tax Expense: $7,000

Requirements:

Compute the gross profit.

Calculate the net income for the year.

Determine the ending retained earnings.

Calculate the current ratio.

Compute the return on equity (ROE).