Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected 10-K financial information for the ABC Company: Selected Accounts FY 2020 FY 2019 FY 2018 FY 2017 Net Sales/Revenue $ 970,500 $ 980,500 $

Selected 10-K financial information for the ABC Company:

Selected Accounts FY 2020 FY 2019 FY 2018 FY 2017
Net Sales/Revenue $ 970,500 $ 980,500 $ 900,000 $1,150,000
Operating Expenses $ 170,200 $ 167,665 $ 155,700 $ 187,600
Net Profit $ 171,115 $ 163,497 $ 143,990 $ 196,400
Total Assets $ 1,969,700 $ 1,421,800 $ 2,516,200 $2,552,900

(a) Please compute the DuPont Return on Asset (ROA) ratios for FY 2020, FY 2019, and FY 2018. All calculations must be 2-decimal places (20%)

(b). Without competitors and industry index, or additional research, please provide 2 possible reasons for the ratio trends between FY 2019 to FY 2020. One trend should be focus on the Net Profit Margin change and the other on the Total Asset Turnover change. Pleaserespond in over 100-words (10%).

(c) Without competitors or industry index comparisons, and based on the changes in ROA from FY 2018 to FY 2020, do you believe the company's management is doing a great job of creating values for the company's investors and shareholders? Please explain in over 150-words (5%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Routledge Companion To Fair Value In Accounting

Authors: Gilad Livne

1st Edition

0367656132, 9780367656133

More Books

Students also viewed these Accounting questions

Question

Was there an interaction of history and treatment effects?

Answered: 1 week ago