Question
DuPont System The following data are from Saratoga Farms, Inc, 2014 financial statement: Sales $2,000,000 Net Income $200,000 Total Assets $1,000,000 Debt to TA Ratio
DuPont System The following data are from Saratoga Farms, Inc, 2014 financial statement:
Sales $2,000,000
Net Income $200,000
Total Assets $1,000,000
Debt to TA Ratio 60%
a. Construct and solve the DuPont and Modified DuPont equations for Saratoga Farms.
b. What would be the impact on ROE if the debt to TA ratio were 80%?
c. What would be the impact on ROE if the debt to TA were 20%?
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Accounting And Finance For Non Finance Managers
Authors: Jai Kumar Batra
1st Edition
9352806964, 978-9352806966
