Plum Electronics Inc. has a profitability ratio of 0.14, an asset turnover ratio
ID: 2631766 • Letter: P
Question
Plum Electronics Inc. has a profitability ratio of 0.14, an asset turnover ratio of 1.7, a debt to equity ratio of 0.60 and a total asset to equity ratio of 1.60. What is the firm's ROE? 34) ______ A) 41.76% B) 38.08% C) 22.85% D) 14.28% Consider the information below from a firm's balance sheet for 2011 and 2012. All the work has to be shown! Current Assets 2012 2011 Change Cash and Equivalents $1,561 $1,800 -$ 239 Short-Term Investments $1,052 $3,010 -$ 1,958 Accounts Receivable $3,616 $3,129 $ 487 Inventories $1,816 $1,543 $ 273 Other Current Assets $ 707 $ 601 $ 106 Total Current Assets $8,752 $10,083 -$1,331 Current Liabilities Accounts Payable $5,173 $5,111 $ 62 Short-Term Debt $ 288 $ 277 $ 11 Other Current Liabilities$1,401 $1,098 $ 303 Total Current Liabilities $6,862 $6,486 $ 376 35) Assuming the Operating Cash Flows (OCF) are $7,155 and the Net Capital Spending (NCS) is $2,372, what is the Cash Flow from Assets?
Explanation / Answer
B) 38.08%