Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Automatic zoom Balance Sheet Income Statement Cash $ 5,200 Sales $192,300 Accounts Receivable 16,800 Cost of Goods Sold 113,300 Inventory 32,500 $ 79,000 Total Current

image text in transcribed
image text in transcribed
Automatic zoom Balance Sheet Income Statement Cash $ 5,200 Sales $192,300 Accounts Receivable 16,800 Cost of Goods Sold 113,300 Inventory 32,500 $ 79,000 Total Current Assets $ 54,500 $ 45,200 Fixed Assets $171,000 $ 9,000 Gross Profit Cash Operating Expenses Depreciation EBIT Interest Expense Taxable income Less: Accumulated Depreciation 39,000 $ 24,800 Net Fixed Assets $132,000 $ 6,700 Total Assets $186,500 $ 18,100 Taxes $ 5,700 $ 6,100 Net Income $ 12,400 8,700 Less: Dividend Payment Addition to Retained Earnings $ 6,500 $ 5,900 5,700 Accounts Payable Accrued Wages Accrued Taxes Notes Payable Total Current Liabilities Long Term Debt Total Liabilities 9,200 $ 29,700 $ 81,200 Common Stock $ 110,900 $ 61,500 14,100 Retained Earnings $ 12,400 Accounts Payable Accrued Wages Accrued Taxes Automatic Zoom $ 6,100 Net Income 8,700 Less: Dividend Payment 5,700 Addition to Retained Earnings 9,200 $ 6,500 $ 5,900 Notes Payable $ 29,700 Total Current Liabilities Long Term Debt $ 81,200 Total Liabilities $ 110,900 Common Stock $ 61,500 14,100 Retained Earnings Total Equity Total Liabilities and Equity $ 75,600 $186,500 Use the financial statements above to calculate the firm's DuPont ROE. Calculate ROE and each of its components for the firm and for the industry. Make a table of your results. Compare each component and ROE to the corresponding industry number. Industry averages are as follows: Industry average total debt to total asset ratio: 0,46 Industry average net profit margin: 7.2 percent Industry average ROE: 15.25%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Core Concepts

Authors: Raymond Brooks

3rd Edition

0133866742, 9780133866742

More Books

Students also viewed these Finance questions