1. DuPont analysis is an expression which breaks Return on Equity (ROE) into three parts namely profitability, asset efficiency, and financial leverage. As a financial manager, how are you going to explain an increase in a firms ROE from a DuPont analysis perspective? 2. Please explain how a financial manager can cope with uncertainty in preparing his firms cash budget?

3.Please explain how a percent-of-sales method can be used to prepare a pro forma income statement. Discuss the major weaknesses of the approach and how to overcome it.