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Cash Accounts receivable Inventory Current assets Balance Sheet Data $1,200,000 2,400,000 3,600,000 7,200,000 Accounts payable $1,440,000 Accruals 480,000 Notes payable 1,920,000 Current liabilities 3,840,000 Long-term
Cash Accounts receivable Inventory Current assets Balance Sheet Data $1,200,000 2,400,000 3,600,000 7,200,000 Accounts payable $1,440,000 Accruals 480,000 Notes payable 1,920,000 Current liabilities 3,840,000 Long-term debt 4,080,000 Total liabilities 7,920,000 Common stock 1,620,000 Retained earnings 4,860,000 Total equity 6,480,000 Total debt and equity $14,400,000 Income Statement Data Sales Cost of goods sold Gross profit Operating expenses EBIT Interest expense EBT Taxes Net income $24,000,000 14,400,000 9,600,000 6,000,000 3,600,000 720,000 2,880,000 1,008,000 $1,872,000 Net fixed assets 7,200,000 Total assets $14,400,000 If I remember correctly, the DuPont equation breaks down our return on equity (ROE) into three component ratios: the the ratio, and the And, according to my understanding of the DuPont equation and its calculation of ROE, the three ratios provide insights into the company's effectiveness in using the company's assets, and Value Correct/Incorrect Cepeus Manufacturing Inc.DuPont Analysis Ratios Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) Value Correct/Incorrect Ratios Asset management ratio 40.00 Total assets turnover 1.67 12.00 13.00 Financial ratios Equity multiplier 39.51 1.82 Numerator Denominator Value Cepeus Manufacturing Inc.DuPont Analysis Ratios Profitability Ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) Calculation / / / / = Numerator Calculation Denominator Value Asset management ratio Total assets turnover Numerator Calculation Denominator Value Financial ratios Equity multiplier /
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