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Ch 04- Assignment - Analysis of Financial Statements Balance Sheet Data Cash Accounts receivable Inventory Current assets Net fixed assets Total assets $600,000 1,200,000 1,800,000
Ch 04- Assignment - Analysis of Financial Statements Balance Sheet Data Cash Accounts receivable Inventory Current assets Net fixed assets Total assets $600,000 1,200,000 1,800,000 3,600,000 3,600,000 $7,200,000 Accounts payable Accruals Notes payable Current liabilities Long-term debt Total liabilities Common stock Retained earnings Total equity Total debt and equity $7,200,000 Income Statement Data Sales Cost of goods sold Gross profit Operating expenses EBIT Interest expense $720,000 240,000 960,000 1,920,000 2,400,000 4,320,000 720,000 2,160,000 Taxes 2,880,000 Net income 7 EBT If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the turnover ratio, and the $12,000,000 7,200,000 4,800,000 3,000,000 1,800,000 403,200 1,396,800 349,200 $1,047,600 the total asset 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 Now, let's see your notes with your ratios, and then we can talk about possible strategies that will improve the ratios. I'm going to check the box to the side of your calculated value if your calculation is correct and leave it unchecked if your calculation is incorrect.
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