Question
Calculate dividend paid, the components of the Du Pont identity and ROE for the company. Use year-end 2018 values where appropriate. RST, Inc. 2018 statement
Calculate dividend paid, the components of the Du Pont identity and ROE for the company. Use year-end 2018 values where appropriate.
RST, Inc. 2018 statement of comprehensive income ($ in millions) | |
Net sales
| $8,769 |
Cost of goods sold | 6,128 |
Depreciation | 1364 |
Earnings before interest and taxes | 1277 |
Interest paid | 730 |
Taxable Income | 547 |
Taxes | 186 |
Net income | 361 |
Dividends paid | ? |
Addition to retained earnings | ? |
RST, Inc. 2017 and 2018 Statement of financial positions ($ in millions) | |||||
| 2017 | 2018 |
| 2017 | 2018 |
Cash | $1423 | $965 | Accounts payable | 1007 | 2251 |
A/R | 3196 | 2894 | Notes payable | 2100 | 1850 |
Inventory | 1543 | 1650 | Total | 3107 | 4101 |
Total | 5162 | 5509 | Long-term debt | 8670 | 7280 |
Net fixed assets | 21300 | 22578 | Common stock | 7200 | 9200 |
|
|
| Retained earnings | 7485 | 7686 |
Total Assets | 26462 | 28267 | Total liab. & equity | 26462 | 28267 |
Calculate dividend paid, the components of the Du Pont identity and ROE for the company. Use year-end 2018 values where appropriate.
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