ROE = 9% and the industry average is 12.9%. need to set that to 12.9%
and change the balance sheet acounts. Net income= 27, current
liabilities= 111 (in the millions). Total assets= 450 and total
liabilities and equity= 450. ROE= NET INCOME 27/SALES 795* SALES
795/TOTAL ASSETS 450* TOTAL ASSETS 450/COMMON EQUITY 315. I hope that
the info provided will help with setting roe to 12.9% and changing
balance sheet numbers. thanks

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Request for Question Clarification by omnivorous-ga on 10 Oct 2004 08:16 PDT

Fussell --

This is pretty confusing, especially since changing balance sheet
accounts can get executives is a lot of legal trouble.

What are you seeking to do?  One way that a company with an
inefficient (read that as "uncompetitive") capital structure is to
gradually change its debt/equity ratios in increase return on equity. 
The boldest examples are leveraged buyouts, which accomplish the same
thing in dramatic fashion.

Is this what you're seeking to do?

Best regards,

Omnivorous-GA

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Clarification of Question by fussell-ga on 10 Oct 2004 14:58 PDT

omnivorous-ga. ok what i am looking for is to set my roe too 12.9%
givin the 9% ratio that was given to you. example on this but not the
same is days sales outstanding. ok so asume that the ratio given by
the mathmatical equation is notof the industry average.so set to
industry average(35 days). 35=acounts receivable/(some number/another
number) IE(35=AR(1607500/365),=35=AR/4404.11,Than ar would equal
35*4404.11. final would be ar=154144. so what im looking for is an
eqaution that would set my average to the industry average and gather
the other info from there.