Hi, I would really appreciate some help. I basically just need confirmation on w

Question

Hi, I would really appreciate some help. I basically just need confirmation on which numbers to pull from the statements. I've marked which ones I think are correct. I need to find two things: 1) Debt-to-Equity Ratio and 2) ROE.

Please check if the Total liability and Total shareholders' equity are the correct numbers I should be using:

1) Debt-to-Equity ratio= “Total liabilities” ÷ “Total shareholders’ equity”

=(A): Total liabilities= 53,951,962,664 ÷ (B): Total shareholders’ equity= 37,844,940,128= 1.43

This is where I'm having the most trouble. I honestly don't know which numbers I need to pick for this equation. Here's what I think might be correct. Please help me find the ROE:

2) ROE= “Income before discontinued operations and extraordinary items” ÷ “Average shareholders’ equity”

Income before discontinued operations and extraordinary items=

Is it (C): Income before income taxes and equity income= 24,911,353,256 or (D): Net income and comprehensive income(aka after tax exp)= 19,481,726,097, or some other number?

Average shareholders’ equity=

Is it [(E): Balance at December 31, 2014= 36,282,053,645 + (F): Balance at December 31, 2015= 37,844,940,128 ]÷ 2= 37,063,496,887

Or just (F): Balance at December 31, 2015= 37,844,940,128?

And then ROE= ?

LIABILITIES AND EQUIT December 31 2015 2014 Current liabilities: Trade accounts payable Due to related parties (note 8) Payroll payable Income taxes payable Dividends payable Other current liabilities 29,803,717,91825,880,650,287 10,826,457,662 10,894,056,510 3,363,424,4 2,555,197,206 3,512,951,655 1,503,481,721 2,534,187,3961,680,939,212 3,722,989,5631,696,629,011 Total current liabilities 53,763,728,605 44,210,953,947 Long-term liabilities Accrued and other long-term liabilities 188,234,059 114,533,730 A Total liabilities 53.951.962.664 44,325.48 7,677 Commitment and contingencies (note 9) Equity Statutory capital 8,802,006,1388,802,006,138 1,174,131 23,338,020,279 21,017,323,468 Additional paid-in capital 1,174,131 Retained earnings Total SAIC General Motors Corp., Ltd.'s equity Non-controlling interests Total equity Total liabilities and equity 32,141,200,548 29,820,503,737 5,703,739,5806,461,549,908 37.844.940, 128 36,282,053,645 91,796,902,792 80607,541.322

Explanation / Answer

A)

Debt to equity ratio = total liabilities / total shareholders equity

= 53,951,962,664 ÷ 37,844,940,128 = 1.43

B)

Average shareholders’ equity = [36,282,053,645 + 37,844,940,128 ]÷ 2= 37,063,496,887

ROE = Income before discontinued operations and extraordinary items” ÷ “Average shareholders’ equity”

= 19,481,726,097 / 37,063,496,887 = .5256 or 52.56%

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