C) A financial record containing information about profitability for the last year went missing from the...

 

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C) A financial record containing information about profitability for the last year went missing from the Finance Department at the headquarters of Jawwal Co. Jawwal is seeking your help to retrieve part of these records along with one of their best employees named Ahmed. Ahmed, who is a financial controller at the company, is certain that the return on equity during the last fiscal year was 13.8%, along with sales - $979,000, total debt-equity ratio=0.42, and total debt which was (1-44% of total sales). Further, Ahmad is sharing with you that his estimation of the ratio between net earning and total assets was 4% during the same year. Required: Analyze if Ahmed is correct regarding his estimation. C) A financial record containing information about profitability for the last year went missing from the Finance Department at the headquarters of Jawwal Co. Jawwal is seeking your help to retrieve part of these records along with one of their best employees named Ahmed. Ahmed, who is a financial controller at the company, is certain that the return on equity during the last fiscal year was 13.8%, along with sales - $979,000, total debt-equity ratio=0.42, and total debt which was (1-44% of total sales). Further, Ahmad is sharing with you that his estimation of the ratio between net earning and total assets was 4% during the same year. Required: Analyze if Ahmed is correct regarding his estimation.

Answer rating: 100% (QA)

To analyze Ahmeds estimation lets break down the given information and calculate the different ratio... View the full answer