(DuPont analysis) Dearborn Supplies has total sales of $191 million, assets of $92 million, a return...

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(DuPont analysis) Dearborn Supplies has total sales of $191 million, assets of $92 million, a return on equity of 25 percent,

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Answer 1

Answer #1

Profit Margin = 7.90%

Return on Equity = 25%

Net Income = Total sales * net profit margin = $191,000,000 * 7.90% = $15,089,000

ROE = Net Income / Total stockholder's Equity

Total stockholder's Equity = $15,089,000 / 0.25 = $60,356,000

Debt Ratio = Total Debt / Total Assets

Total Debt = Total Assets - Total stockholder's Equity

Debt Ratio = [$92,000,000 - $60,356,000] / $92,000,000

Debt Ratio = 0.344 or

Debt ratio = 34.4% (rounded off to '1' decimals)

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Answer 2

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(DuPont analysis) Dearborn Supplies has total sales of $191 million, assets of $92 million, a return...

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(DuPont analysis) Dearborn Supplies has total sales of $ 191 million, assets of $ 90 million, a return on equity of...

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