Problem 1: Sources and Uses of Cash Pioneer Inc. Balance Sheet as of December 31
ID: 2808006 • Letter: P
Question
Problem 1: Sources and Uses of Cash Pioneer Inc. Balance Sheet as of December 31, Cash and Mkt. Securities s 700 s 50020e Source or Use 2013 2012 Assets: 250 Receivables Inventories 450-400 1,400 1,200 u Total current assets 1,000 2,400 -950-= Net property and equipment Total assets 2,150 Liabilities Payables Short-term debt Other current liabilities s 200S 400 20o u 300250 So So S 400 200 2c0 3_ Total current liabilities S 900 S 850 Long-term debt 800-900 100 Total liabilities S 1,700 1,750 Common stock Retained earnings 500300 200 S 200100 Rs 12DS Total shareholders' equity Total liabilities and sh. equity S 400 2,15- S 700 2,400=Explanation / Answer
PROBLEM 2
Also, ROA= net income/ avg assets = 3206/2275 =1.4092
8. ROE = net income/ avg equity = 3206/550=5.8291
Also, ROE (du pont) = (net income/ avg assets)x(avg assets/ avg equity) = ROA x leverage =1.4092 x 4.1364 = 5.8291