The accounting department of your company has just delivered a draft of the current year's financial statements to you. The summary is as follows: Total Assets Total Liabilities Total Equity Net Income for the Year Common Shares Outstanding Beginning of the Year $550,000 210,000 340,000 21,000 End of the Year $597,000 215,000 382,000 111,600 21,000 You discovered that they have not adjusted for estimated bad debt expenses of $7,500. For each of the following ratios, calculate: 1. The ratio that would have resulted had the error not been discovered (i.e. the incorrect ratio). 2. The correct ratio. A C D E Incorrect: Correct: 19.46% 18.27% 30.91% 29.14% 1 2 ROA 3 ROE A Debt Ratio 5 EPS 6 7 8 9 10