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As the question states, please calculate ROA and ROE for years 1-5, thanks, I'll be sure to give you a thumbs up! Calculate A and
As the question states, please calculate ROA and ROE for years 1-5, thanks, I'll be sure to give you a thumbs up!
Calculate A and B's return on assets and return on equity ratios for Years 1-5. Round your answers to one decimal place (e.g. enter .154683 as 15.5). (Hints: 1. make sure that your balance sheet balances every year. 2. You'll need to adjust "other assets" for the other items of revenue and expense (not depreciation)). Year Year 1 Year 2 Year 3 Year 4 Year 5 Company A (Straightline) Balance Sheet PP&E AVD Other Assets 500,000 500,000 500,000 500,000 500,000 500,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Liabilities Equity 250,000 1,250,000 250,000 1,250,000 250,000 1,250,000 250,000 1,250,000 250,000 1,250,000 250,000 1,250,000 Income Statement Revenue Depr Exp Other Exp 400,000 400,000 400,000 400,000 400,000 400,000 125,000 125,000 125,000 125,000 125,000 125,000 ROA ROE Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Company B (DDB) Balance Sheet PP&E A/D Other Assets 500,000 500,000 500,000 500,000 500,000 500,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Liabilities Equity 250,000 1,250,000 250,000 1,250,000 250,000 1,250,000 250,000 1,250,000 250,000 1,250,000 250,000 1,250,000 400,000 400,000 400,000 400,000 400,000 400,000 Income Statement Revenue Depr Exp Other Exp 125,000 125,000 125,000 125,000 125,000 125,000Step by Step Solution
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