Question
The accounting department of your company has just delivered a draft of the current year's financial statements to you. The summary is as follows
The accounting department of your company has just delivered a draft of the current year's financial statements to you. The summary is as follows Total Assets Total Liabilities Total Equity Net Income for the Year Common Shares Outstanding Beginning of the Year $550,000 210,000 340,000 22,000 End of the Year $564,000 the 205,000 359.000 90,600 22.000 You discovered that they have not adjusted for estimated bad debt expenses of $7,100. For each of the following ratios, calculate 1. The ratio that would have resulted had the error not been discovered (Le. the incorrect ratio). 2. The correct ratio A B C D E Incorrect Correct 2 ROA ROE Debt Ratio EPS 1 10 1234567899
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