Using the Dupont Model, calculated each component(profit margin, total asset turnover and equity multiplier as well as the return on equity for XYZ Company

b.Calculate the Operating Cash Flow

c.Calculate Net Working Capital (NWC)

d.Calculate Net Operating Working Capital (NOWC)

Balance Sheet

Cash$77,500

Receivables$336,000

Inventories$241,500

Total Current Assets $655,000

Net Fixed Assets$292,500

Total Assets$947,500

Accounts Payable$129,000

Notes Payable$84,000

Other Current Liabilities$ $117,000

Total Current Liab.$330,000

Long-term Debt$256,500

Common Equity$361,000

Total Liab. &

Equity$947,500

Income Statement

Sales$1,600,000

Cost of Goods Sold$1,200,000

Depreciation$145,000

EBIT$255,000

Interest Expense$90,000

EBT$165,000

Taxes$57,750

Net Income $107,250