# Question & Answer: cl①ezto.mheducation.com/hm.tpx izaje AC × 5 thru Notes Rec. (10 polnts) 6 0 . 0 points You d that they have not adjusted for est…..

cl①ezto.mheducation.com/hm.tpx izaje AC × 5 thru Notes Rec. (10 polnts) 6 0 . 0 points You d that they have not adjusted for estimated bad debt expenses of \$8,100. For each of the following ratios, calculate 2. The correct ratio 3 ROE 10

Incorrect:

Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: cl①ezto.mheducation.com/hm.tpx izaje AC × 5 thru Notes Rec. (10 polnts) 6 0 . 0 points You d that they have not adjusted for est…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS \$13/PAGE

Debt ratio=Total liabilities/Total assets

=\$209,000/\$560,000

=37.32%

Correct:

ROA=Net income/Average Total assets

=(\$117,100-\$8,100)/[(\$550,000+\$560,000-\$8,100)/2]

=19.78%

ROE=Net income/Average Equity

=(\$117,100-\$8,100)/(\$340,000+\$351,000-\$8,100)

=31.92%

Debt ratio=Total liabilities/Total assets

=\$209,000/(\$560,000-\$8100)

=37.87%