Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: Income statement information Net sales ($ in thousands) 2021 $5,200 2020

The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: Income statement information Net sales ($ in thousands) 2021 $5,200 2020 Net income Balance sheet information Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities 180 $4,200 124 $ 800 1,100 $1,900 $ 600 $ 750 950 $1,700 $ 450 750 Common stock 400 750 400 Retained earnings 150 100 Liabilities and shareholders' equity $1,900 $1,700 Required: 1. Determine the following components of the DuPont framework for 2021: 2. Write an equation that relates these components in calculating ROE. Use the Peabody Toys data to show that the equation is correct. Determine the following components of the DuPont framework for 2021: Choose Numerator: Net income $ Choose Numerator: Net income $ Profit Margin (%) Choose Denominator: Net sales 180 $ Asset Turnover Profit Margin Profit Margin 5,200 3.46% Choose Denominator: Average total assets Asset Turnover Asset turnover 180,000 $ 1,800,000 0.10 Equity Multiplier Choose Denominator: Equity Multiplier Equity multiplier 0 Choose Numerator: Choose Numerator: Net income $ Return on Shareholders' Equity (%) Choose Denominator: Average total equity Return on Equity Return on equity 180,000/ $ 525,000 34.3%

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

Step: 3

blur-text-image

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

Cima Official Learning System Financial Operations

Authors: Jo Watkins

6th Edition

1856177912, 978-1856177917

More Books

Students also viewed these Accounting questions

Question

LO2 Explain the major laws governing employee compensation.

Answered: 1 week ago