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Dear friends, here are the data in the problem: XXXXXXXXXX 2007 Current Ratio XXXXXXXXXX 2.00 Quick Ratio XXXXXXXXXX 1.47 Day's Sales in Receivables XXXXXXXXXX Merchandise Inventory Turnover...

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Dear friends, here are the data in the problem:

XXXXXXXXXX 2007

Current Ratio XXXXXXXXXX 2.00

Quick Ratio XXXXXXXXXX 1.47

Day's Sales in Receivables XXXXXXXXXX

Merchandise Inventory Turnover XXXXXXXXXX

Debt Ratio XXXXXXXXXX 0.47

Times Interest Earned XXXXXXXXXX

Sales as % of 2007 sales 146% 123% 112% 106% 100%

Net income as % of 2007 Income 131% 120% 110% 106% 100%

Gross Profit Margin 38.5% 38.8% 38.9% 40% 39.7%

Operating Expenses to Net Sales 11.4% 11.3% 11.5% 11.4% 11.7%

Net Profit Margin 7.6% 8.6% 8.9% 9.4% 9.3%

Return on Total Assets 9.4% 9.6% 9.6% 10% 10.7%

How do I find ROE AND FLjust from these data? Thanks for any help

Answered Same Day Dec 21, 2021

Solution

David answered on Dec 21 2021
132 Votes
SOLUTION
ROE=NET PROFIT/EQUITY
OR ROE =NET PROFIT/SALES XSALES/ASSETS XASSETS/EQUITY
OR ROE=NP MARGIN X EBIT/ASSETS XSALES/EBIT X 1/(1-DEBT RATIO)
OR ROE=NP MARGIN X EBIT/ASSETS XSALES /(NET PROFIT +INTEREST) X 1/(1-DEBT RATIO)
OR ROE=AXBXSALES/(NET PROTI +NET PROTI/4.6) X1/(1-D) [AS...
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