Tugas Manajemen Keuangan

Chapter 4

G. ROE = ROA x Equity Multiplier
= (Profit Margin x Total Assets Turnover) x Equity Multiplier
` = (

) x



= (

) x

= ( 3,6% x 2,01 Times) x 2,03 Times
= 14,69%

H. Old A/R = $19,275.62 x 45.6 = $878,000
New A/R = $19.275.62 x 32.0 = $616,820
Cash Freed Up = $261,180

Added Cash 261 Debt $1,545
A/R 617
Other CA 1,802
Net FA 817 Equity 1,952
Total Assets $3,497 Total L&E $3,497

Potential Uses of Freed Up Cash
Repurchase stock
Expand business
Reduce debt
All these actions would likely improve the stock price.

I. Along with the increasing of inventories, ceteris paribus. So, as long as the total assets
turnover is higher than the equity multiplier, the profitability and the stock will increase.
But, if the equity multiplier is higher than total assets turnover, by reducing inventories,
the profitability and stock price will increase as well.

J. Based on the previous transaction, as a bank, I wouldnt give the loan to DLeon. But, if
DLeon can guarantee its futures projections along with the proof that it was going to
raise more than $1,2 million of equity, I will reconsider.

K. DLeon had done the sales in 2011 and earned $87,960.

L. Potential Problems and Limitations of Financial Ratio Analysis:
o Comparison with industry averages is difficult for a conglomerate firm that operates in
many different divisions.
o Different operating and accounting practices can distort comparisons.
o Sometimes it is hard to tell if a ratio is good or bad.
o Difficult to tell whether a company is, on balance, in a strong or weak position.

Muhammad Hatta
Manajemen 346420
M. More Issues Regarding Ratios
o Average performance is not necessarily good, perhaps the firm should aim higher.
o Seasonal factors can distort ratios.
o Window dressing techniques can make statements and ratios look better than they
actually are.
o Inflation has distorted many firms balance sheets, so analyses must be interpreted with
judgment.