Using the balance sheet below, calculate the Debt-Equity Ratio (Book values) and Return on Equity (ROE, use book value for equity). Net Income for the company is 9,045,000.

XYZ Balance Sheet

Assets

Current assets: 2020 2021 change

Cash 1,500,000 1,800,000 300,000

Investments 1,000,000 1,025,000 25,000

Inventories 112,000,000 127,000,000 15,000,000 Accounts receivable 11,950,000 12,500,000 550,000

Pre-paid expenses 2,500,000 2,650,000 150,000

Other 0 0

Total current assets 128,950,000 144,975,000 16,025,00

Fixed assets: 2020 2021 change

Property and equipment 155,000,000 172,500,000 17,500,000

Leasehold improvements 0 0 0

Equity and other investments 48,000,000 57,000,000 9,000,000

Total fixed assets 203,000,000 229,500,000 26,500,000

Other assets: 2020 2021 change

Goodwill 85,000,000 70,000,000 -15,000,000

Total other assets 85,000,000 70,000,000 -15,000,000

Total assets 416,950,000 444,475,000 27,525,000

Liabilities and owner's equity

Current liabilities: 2020 2021 change

Accounts payable 38,500,000 43,200,000 4,700,000

Accrued wages 75,000,000 80,500,000 5,500,000

Accrued compensation 10,000,000 10,255,000 255,000

Income taxes payable 4,024,000 4,697,000 673,000

current portion of LT debt 5,000,000 5,350,000 350,000

Other 0 0 0

Total current liabilities 132,524,000 144,002,000 11,478,000

Long-term liabilities: 2020 2021 change

Long term debt 115,000,000 130,000,000 15,000,000

Total long-term liabilities 115,000,000 130,000,000 15,000,000

Owner's equity: 2020 2021 change

Common stock 122,000,000 122,000,000 0

Preferred stock 16,725,000 16,725,000 0

Accumulated retained earnings 30,701,000 31,748,000 1,047,000

Total owner's equity 169,426,000 170,473,000 1,047,000

Total liabilities and owner's equity 416,950,000 444,475,000 27,525,000