Suppose that the Bethesda Mining Company had sales of $2,945,376 and net income of $89,351 for the
Question:
Suppose that the Bethesda Mining Company had sales of $2,945,376 and net income of $89,351 for the year ending December 31, 2016. Calculate the DuPont identity.
Bethesda Mining Company reports the following balance sheet information for 2015 and 2016.
BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016 2015 2016 2015 2016 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable Inventory 19,256 21,946 Accounts payable 46,396 109,626 $171,531 $153,984 79,218 107,606 250.749 $261.590 $255,000 $278,500 54,486 Notes payable 129,253Total $175.278 $205,685 Long-term debt Owners' equity Total $160,000 $170,000 Common stock and paid-in surplus Accumulated retained earnings Fixed assets 214,915 Net plant and equipment $705.386 $785,205 Total Total assets 374.915 $450.800 $880,664 $990,890 Total liabilities and owners' equity $880,664 $990,890
Step by Step Answer:
DuPont identity is the expression which shows that for any company the return on equity ROE ca...View the full answer
Essentials of Corporate Finance
ISBN: 978-1259277214
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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