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Author Question: Blockbuster Inc.Balance Sheet for year-ended Dec 31 ($000s)ASSETSYear 1Year ... (Read 37 times)

azncindy619

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Blockbuster Inc.
Balance Sheet for year-ended Dec 31 ($000s)
ASSETSYear 1Year 2
Cash 194,200200,200
Accounts Receivables185,800150,000
Inventory242,200202,900
Other Current Assets177,300163,300
Total Current Assets799,500716,400
Fixed Assets
Long Term Investments214,100159,500
PP&E1,079,400909,000
Goodwill6,455,9005,967,500
Total Fixed Assets7,749,4007,036,000
Total Assets8,548,9007,752,400
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts Payable1,090,4001,087,400
Short-term Debt32,800181,400
Total Current Liabilities1,123,2001,268,800
Long-term Debt1,417,300734,900
Total Liabilities2,540,5002,003,700
Shareholders' Equity
Common Stock6,095,2006,075,800
Retained Earnings-86,800-327,100
Total Stockholder Equity6,008,4005,748,700
Total Liabilities and Shareholders' Equity8,548,9007,752,400

Blockbuster Inc.
Income Statement for year-ended Dec 31 ($000s)
Year 1Year 2
Sales4,969,1005,157,600
COGS2,036,0002,420,700
SG&A2,390,6002,532,400
Depreciation279,000246,600
Amortization of Intangibles180,100176,100
Operating Income (Loss)83,400-218,200
Interest Expense116,50078,200
Income Before Tax-33,100-296,400
Income Tax Expense45,400-56,100
Net Income -78,500-240,300
Referring to the Blockbuster financial statements, what is the change in ROE from Year 1 to Year 2? 
(ΔROE = ROE2 - ROE1)
◦ -4.80%
◦ -4.18%
◦ -2.87%
◦ -1.20%
◦ -1.17%


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Marked as best answer by azncindy619 on Apr 25, 2021

EAN94

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azncindy619

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it


kswal303

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Reply 3 on: Yesterday
:D TYSM

 

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