Response to the following questions:
1. In 1997, Drexel Corporation had a current ratio of 3.0 and a quick ratio of 1.5. If net working capital is $2 million, what is the amount of Drexel's 1997 inventory?
2. In 1998, Bagehot Corporation's debt-to-assets ratio was 30%, its net profit margin was 15%, and its total asset turnover was 1.25 times. What is Bagehot's return on equity for 1998?