Use the following information to answer the question below:

Balance Sheets

Cash Acc receivable	960,000
Inventories	1,440,000
Fixed assets	4,800,000
TOTAL ASSETS	8,000,000
Current liabilities Acc payable Long-term debt	3,200,000
Common stock	640,000
Retained earnings	3,160,000
TOTAL LIAB and EQUITY	8,000,000
Income Statement
Sales	24,000,000
Operating expense	18,240,000
EBIT	5,760,000
Interest expense	416,000
EBT	5,344,000
Taxes	2,138,000
Net income	3,206,000

1. What is the firms debt ratio and return on equity?