ZuoTi.Pro
Question

12) Given: Total Assets-5,000 Sales 1,500 Net Income 300 Total Debt 4,000 12a) Find the Return on Assets 12b) Find the Return
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

12 a) Return of Assets = Net Income/ Total Assets = 300/5000 = 6%

b) Return on Equity = Net Income/ Equity = 300/(5000-4000) = 30%

c) Profit Margin = Net Income/Sales = 300/1500 = 20%

d) Total asset Turnover = Sales/Total Assets = 1500/5000 = 30%

e) Capital Intensity Ratio = Total Assets/ Sales = 5000/1500 = 3.33

f) Du Point Identity
Equity multiplier = Total assets/ Equity =5000/(5000-4000) = 5
ROE = Net Profit Margin * Total Assets Turnover * Equity Multiplier = 20% * 30% * 5 =30%

Please Discuss in case of Doubt

Best of Luck. God Bless
Please Rate Well



0 0
Add a comment
Know the answer?
Add Answer to:
12) Given: Total Assets-5,000 Sales 1,500 Net Income 300 Total Debt 4,000 12a) Find the Return...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1. Sandhill, Inc., has net income of $14,964,000 on net sales of $348,000,000.The company has total...

    1. Sandhill, Inc., has net income of $14,964,000 on net sales of $348,000,000.The company has total assets of $116,000,000 and stockholders’ equity of $40,000,000. Use the extended DuPont identity to find the return on assets and return on equity for the firm. Profit margin: Total assets turnover: ROA: ROE: 2.Crane Sports Innovations has disclosed the following information: EBIT = $22,680,000 Net income = $12,600,000 Net sales = $81,000,000 Total debt = $34,000,000 Total assets = $84,000,000 Compute the following ratios...

  • MUST SHOW ALL WORK The DuPont formula relates return on equity (Net income + Stockholders equity)...

    MUST SHOW ALL WORK The DuPont formula relates return on equity (Net income + Stockholders equity) to the company's net profit margin- Net income sales asset turnover (SalesTotal assets and equity multiplier (Total assets Stockholders equity). This Company is in an industry where the average net profit margin is 6.19%, the debt-to-asset ratio (Debt. Total assets) is 27.9%, and return on equity is 20.22% Find below the Company's financial statements for year 2525 Balance Sheet, 12/31/2525 Income, 1/1 - 12/31/2525...

  • Sandhill, Inc., has net income of $13,020,000 on net sales of $372,000,000.The company has total assets...

    Sandhill, Inc., has net income of $13,020,000 on net sales of $372,000,000.The company has total assets of $124,000,000 and stockholders' equity of $50,000,000. Use the extended DuPont identity to find the return on assets and return on equity for the firm. (Round answers to 2 decimal places, e.g. 12.25 or 12.25%.) Profit margin Total assets turnover times ROA ROE

  • the DuPont formula relates return on equit The DuPont formula relates return on equity (= Net...

    the DuPont formula relates return on equit The DuPont formula relates return on equity (= Net income, - Stockholders equity) to the company's net profit margin (= Net income Sales), asset turnover (= Sales + Total assets), and equity multiplier (= Total assets + Stockholders equity). This Company is in an industry where the average net profit margin is 6.19%, the debt-to-asset ratio (= Debt + Total assets) is 27.9%, and return on equity is 20.22%. Find below the Company's...

  • Motorola Credit Corporation's annual report Net revenue (sales) Net earnings Total assets Total liabilities Total stockholders'...

    Motorola Credit Corporation's annual report Net revenue (sales) Net earnings Total assets Total liabilities Total stockholders' equity (dollars in millions) 265 147 2,015 1,768 427 a. Find the total debt to total assets ratio. (Round your answer to the nearest hundredth percent.) Total debt to total assets b. Find the return on equity ratio. (Round your answer to the nearest hundredth percent.) Return on equity c. Find the asset turnover ratio. (Round your answer to the nearest cent.) Asset turnover...

  • SW Inc, financial statements for 2017 show Balance Sheet 12/31/2525 Income 1/1 - 12/31/2525 $1,500 Current...

    SW Inc, financial statements for 2017 show Balance Sheet 12/31/2525 Income 1/1 - 12/31/2525 $1,500 Current assets $2,500 Debt Sales $30.780 4.200 PPSE $3.200 Stockholders' equity total costs $28.590 $5.700 Total assets $5,700 net income $2,190 SW Inc is in an industry where the average net profit margin is 7.04%, the debt-to-asset ratio (Debt / Total assets) is 33.2, and return on equity is 56.38%. For the company relat statement most consistent with the DuPont analysis. the company's asset turnover...

  • Under the DuPont system, the return on assets is equal to Select one: a. the product...

    Under the DuPont system, the return on assets is equal to Select one: a. the product of the gross profit margin and inventory turnover b. the sum of the debt-equity ratio and the return on sales c. the product of the return on sales and total asset turnover d. the product of the return on sales, total asset turnover, and equity multiplier e. none of the above

  • Using the DuPont identity- Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In...

    Using the DuPont identity- Excel FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Arial 12A A Paste - A Alignment Number Conditional Format as Cell Cells Formatting TableStyles- Clipboard Font Styles D13 Zombie Corp. has a profit margin of 5.1 percent, total asset turnover of 1.95, and ROE of 16.15 percent. What is this firm's debt-equity ratio? Profit margin Total asset turnover Return on equity 5.10% 1.95 16.15% 10 Complete the following analysis. Do not hard code...

  • Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000...

    Total assets Total shareholders' equity Net sales Cost of goods sold Net income 2018 $357,000 136,000 503,000 379,000 32,700 2017 $285,000 97,500 394,000 277,000 29,800 2016 $267,000 48,500 297,000 181,000 20,400 Macaron had no preferred shares. Your answer is partially correct. Try again. Calculate the gross profit margin, profit margin, asset turnover, return on assets, and return an common shareholders' equity ratios for 2018 and 2017. (Round gross profit margin, profit margin, return on assets and return on equity to...

  • Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its...

    Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm’s total-debt-to-total-capital ratio was 45.0%. The firm finances using only debt and common equity and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE? DuPont equation: ROE = profit margin * total asset turnover * equity multiplier ROE = (NI / Sales) * (Sales / Total assets) * (Total assets / Total...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT