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The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any

The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $) Assets 2010 Cash and securities $1,290 Accounts receivable 9,890 Inventories 13,760 Total current assets $24,940 Net plant and equipment $18,060 Total assets $43,000 Liabilities and Equity Accounts payable $8,170 Notes payable 6,020 Accruals 4,730 Total current liabilities $18,920 Long-term bonds $8,815 Total debt $27,735 Common stock $5,805 Retained earnings 9,460 Total common equity $15,265 Total liabilities and equity $43,000

Income Statement (Millions of $) 2019 Sales $21,600 Operating costs and except depreciation 18,246 Depreciation 903 Earnings bef interest and taxes (EBIT) 2451 Less interest 1027 Earnings before taxes (EBT) 1424 Taxes 521 Net income 903 Calculate the company's Return on Equity (ROE) and its Net Profit Margin. (show work)

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