Homework Answers
Answer
a)
ROE=Net profit(loss)/Average shareholders equity
Net loss=-1,489 million
Average shareholder's equity=(Stockholder's equity in 2012+Stockholder's equity in 2013)/2
=(18,231+13,916)/2
=16,073.5
ROE=-1,489/16,073.5
ROE=-9.3%
b)Total Assets=Total liabilities+Stockholder's equity
Total assets in 2013=36,205
Stockholder equity=18,231
Total liabilities=36,205-18,231
Total liabilities=17,974
Debt to equity ratio=Total liabilities/Stockolder's equity
=17,974/18,231
Debt to equity ratio=.99
Debt to equity ratio=1 (Rounded off)
c)
Net Profit/(Loss)=Sales-Expense
-1,489=39,659-Expense
Expense=39,659+1,489
Expense=41,148 million
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