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|| Continuing with the above, assume all Rutgers Rotisserie retained earnings in 2018 are deposited into its checking account. Show the new balance sheet as
|| Continuing with the above, assume all Rutgers Rotisserie retained earnings in 2018 are deposited into its checking account. Show the new balance sheet as of beginning 2019. 2019 turns out to be exactly the same as 2018. What are aftertax prots? ROE? What happened? Ell Redo the calculations in | above, with the following change: RR depreciates its real estate over 20 years, its other xed assets over 10 years. Again assume all Rutgers Rotisserie retained earnings in 2018 are held in its checking account. Show the new balance sheet as of beginning 2019. lCan you see a problem? IV Return to the situation as depicted in | {i.e., no depreciation). In addition to the numbers as presented there, during the year RR purchases $10,000 of additional equipment. {It neither borrows the funds nor issues new equity to do so.) Recalculate RR's before and after-tax prots for the year, its ROE, coverage ratio and change in cash between the start and end of the year. Show the new balance sheet
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