THE DU PONT FORMULA AND RETURN ON TOTAL ASSETS. Industry A has th et companies whose income statements and balance sheets are summarized below. Company X Company Y Company Z Sales $500.000 (d) (g) Net income S 25.000 $30.000 (h) Total assets S100.000 (e) $250.000 Total asset turnover (a) 0.4 Profit margin (h) 0.4% 50 Return on total assets (ROA) (c) 2% (i) Requirement: Supply the missing data in the table above.

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.9BE
icon
Related questions
Question
Problem 3
THE DU PONT FORMULA AND RETURN ON TOTAL ASSETS. IndustryA has three
companies whose income statements and balance sheets are summarized below.
Company X
Company Y
Company Z
Sales
$500,000
(d)
(g)
Net income
S 25.000
$30.000
(h)
Total assets
S100.000
(e)
$250.000
Total asset turnover
(a1)
(/)
0.4
Profit margin
(h)
0.4%
Return on total assets (ROA)
(c)
2%
(i)
Requirement:
Supply the missing data in the table above.
Page 74 of 161
Transcribed Image Text:Problem 3 THE DU PONT FORMULA AND RETURN ON TOTAL ASSETS. IndustryA has three companies whose income statements and balance sheets are summarized below. Company X Company Y Company Z Sales $500,000 (d) (g) Net income S 25.000 $30.000 (h) Total assets S100.000 (e) $250.000 Total asset turnover (a1) (/) 0.4 Profit margin (h) 0.4% Return on total assets (ROA) (c) 2% (i) Requirement: Supply the missing data in the table above. Page 74 of 161
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub