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please solve all parts completely wi 4th information given thanks ue Wednesday ssignimen Keap the Highest: /32 mpta Aa Aa An analysis of company performance
please solve all parts completely wi 4th information given thanks
ue Wednesday ssignimen Keap the Highest: /32 mpta Aa Aa An analysis of company performance using DuPont analysis l of your office building with a sheaf of papers in his hand, your friend and colleegue, Jason, stepped into your office asked the following. Jason Do you have 10 or 15 minutes that you can spare? I've got a meeting in an hour, but I don't want to start something new and then be interrupted by the meeting, so how can 1 help? Jason I've been reviewing the company's financial statements and looking for general ways to improve our performance, in hat 1 start by general, and the company's return on equity, or ROE, in particular. Anja, my new team leader, suggesfed t using a DuPont analysis, and I'd like to run my numbers and conclusions by you, to see If I've missed anything Here are the balance sheet and income statement data that Anja gave me, and here are my notes with my calculations Could you start by making sure that my numbers are correct? You Give me a minute to look at these financial statements and to remember what I know about the DuPont analysis. Income Statement Data Balance Sheet Data $800,000 Accounts payable 1,600,000 Accruals 2.400,000 Notes payable 4,800,000 $16,000,000 8,000,000 8,000,000 4,000,000 4,000,000 595,200 3,404,800 1,191,680 $2,213,120 Cash 960,000 Sales 320,000 Cost of goods sold 1,280,000 Gross profit Accounts receivable Current assets llabilities 2,560,000 Operating expenses 3,650,000 EBIT 6,240,000 Interest expense Long-term debt Total liabilities 840,000 EBT 2,520,000 Taxes 3,360,000 Net income Common stock Net fixed assets 4,800,000 Retained eamings Total equity Total assets $9,600,000 Total debt and equity $9,600,000 If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the the total asset turnover 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
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