QUESTION 4 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 $ $ LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity 70.000 50,000 130,000 70,000 40,000 90,000 $ 450,000 MEGAFRAME COMPUTER COMPANY Income Statement $ $ 875,000 600,000 For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses Depreciation 275,000 30,000 55,000 Operating profit $ Interest expense 190,000 25,000 165,000 49,500 $ Profit before taxes Taxes (30%) Net income $ 115 500 Please use the tables above to calculate followings ratios and show your work: (1) ROE (2) Net Profit Margin (3) ROA