How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask F. Naz Your Own Question
F. Naz
F. Naz, B.Com
Category: Single Problem
Satisfied Customers: 5319
Experience:  Have completed B.Com and CA Finalist
20040807
Type Your Single Problem Question Here...
F. Naz is online now
A new question is answered every 9 seconds

Find ROE if NI=60000and Tl assets =400000 and Debt-equity

Customer Question

Find ROE if NI=60000and Tl assets =400000 and Debt-equity ratio is 1.5 and tl acc rec is 60000 and collection period is 23 days
Submitted: 11 months ago.
Category: Single Problem
Expert:  JTtax replied 11 months ago.

Hi, my name is ***** ***** I can help. Just quick question since people use different abbreviations, what do you mean by "TI?"

Customer: replied 11 months ago.
sorry its TL= total
Expert:  JTtax replied 11 months ago.

okay, here is how to solve: assets = liabilities + equity, solve for equity,

400,000 = 1.5D

D = 266,666.67

E = 133,333.33

60,000/133,333,33 = 45% ROE

Customer: replied 11 months ago.
wait, what do you mean by D and if you solving for equity wouldnt it be (assets-liability=equity) and not multipliying???
Expert:  Manal Elkhoshkhany replied 11 months ago.

Hello,

I disagree with the other expert, you are right about the equation.

Total Assets = Debt (Liabilities) + Equity

Please click on the following link to download the solution:

https://app.box.com/s/uen9it7z36ju36r9vl9s98rxdhns5heo

If you have any questions, please do not hesitate to ask; if all is clear, please rate the service

P.S. If you like my services, please feel free to direct your future posts to me specifically by typing "For Manal Elkhoshkhany" at the beginning of your post. Should you choose to do this, please try to allow me at least 48 hours before the deadline.

Thank you

Expert:  F. Naz replied 11 months ago.

...

Expert:  F. Naz replied 11 months ago.

Sorry sent it wrongly, take care.

Related Single Problem Questions