Can you show me the solutions to thesequestions and provide a short explanation of how you arrived at the answers? If you can answer them within2.5 hrs

• 1.DuPontAnalysis
• Gardial&SonhasanROAof12%,a5%profitmargin,andareturnonequityto20%.Whatisthecompanystotalassetsturnover?Whatisthefirmsequitymultiplier?

Answers

S/TA = 2.4

TA/E = 1.67

2. Balance Sheet Analysis

Complete the balance sheet and sales information in the table that follows fro J. White Industries using the following financial data:

Total assets turnover: 1.5

Gross profit margin on sales:(Sales-Cost of goods sold)/Sales = 25%

Total liabilities-to-assets ratio: 40%

Quick ratio: 0.80

Days sales outstanding (based on 365-day year): 36.5 days

Inventory turnover ratio: 3.75

Partial Income Statement Information

Sales ________________________

Cost of goods sold ________________________

Balance Sheet

Cash ________________________ Accounts payable ___________________________

Accounts receivable ________________________ Long-term debt ________50,000____________

Inventories ________________________ Common Stocks ___________________________

Fixed assets ________________________ Retained earnings ________100,000___________

Total assets _______$400,000_______ Total liabilites and equity ____________________________

Answers

Sales =$60,000

COGS = $450,000

Cash = $28,000

AR = $60,000

Inv. = $120,000

FA = $192,000

AP = $110,000

Common Stock = $140,000