Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Given the following information presented in the Income Statement and balance sheet provided, Fill in the table for the three companies using the DuPont Model
Given the following information presented in the Income Statement and balance sheet provided, Fill in the table for the three companies using the DuPont Model Ratios for the three chemical companies for fiscal year 2001. Show calculations following the table. Assume all three companies had the same total common equity as total equity. Can you please show the formulas?
Income Statement (partial) | |||
DuPont | Dow | PPG | |
Revenues | $24,726 | $27,805 | $8,169 |
COGS | 16,727 | 22,015 | 5,137 |
Gross Profit | 7,999 | 5,790 | 3,032 |
SG&A Expenses | 4,513 | 2,807 | 1,764 |
Net Income | 4,339 | (385) | 387 |
Balance Sheet (partial) | |||
DuPont | Dow | PPG | |
Cash & Market Securities | $5,763 | $220 | $108 |
Receivables, net | 3,903 | 5,098 | 1,416 |
Inventories | 4,215 | 4,440 | 904 |
Total Current Assets | 14,801 | 10,308 | 2,703 |
Fixed Assets, net | 13,287 | 13,579 | 2,752 |
Total Assets | 40,319 | 35,515 | 8,452 |
Total Current Liabilities | 8,067 | 8,125 | 1,955 |
Total Liabilities | 25,867 | 25,522 | 5,372 |
Total Equity | 14,452 | 9,993 | 3,080 |
The following additional information is provided for fiscal year 2000 (in millions): | |||
DuPont | Dow | PPG | |
Inventory | $4,658 | $3,463 | $1,121 |
Receivables, net | 4,552 | 5,385 | 1,563 |
Working Capital | 2,401 | 1,387 | 550 |
Fixed Assets, net | 13,287 | 13,579 | 2,752 |
Total Assets | 39,426 | 27,645 | 9,125 |
Total Equity | 13,299 | 9,686 | 3,097 |
DuPont | Dow | PPG | |
Profit Margin (PM) | |||
Asset Turnover (AT) | |||
Return on Assets (ROA) | |||
Financial Leverage (FL) | |||
Return on Equity (ROE) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started