Question
Prepare a Source and Use statement from the following information 2012: Profit Margin=98/1800=5.44% Equity multiplier=720/300=2.4 Asset turnover=1800/720=2.5 Return on Equity=5.44%*2.4*2.5=32.64% 2013: Profit Margin=59/3000=1.97% Equity multiplier=1150/329=3.49544
Prepare a Source and Use statement from the following information
2012:
Profit Margin=98/1800=5.44%
Equity multiplier=720/300=2.4
Asset turnover=1800/720=2.5
Return on Equity=5.44%*2.4*2.5=32.64%
2013:
Profit Margin=59/3000=1.97%
Equity multiplier=1150/329=3.49544
Asset turnover=3000/1150=2.60869
Return on Equity=1.97%*3.49544*2.60869=17.933%
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
