The component that analyzes profitability is • , and its value is The component that analyses productivity on sales is • , and its value is The component that analyzes the leverage is • , and its value is Therefore, the ROE is

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 10MCQ
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Using the following information, determine the three components of the DuPont Analysis and the ROE (DUPONT).


The component that analyzes profitability is
and its
value is
%
The component that analyses productivity on sales is
• and its
value is
The component that analyzes the leverage is
+ , and its value
is
Therefore, the ROE is
Transcribed Image Text:The component that analyzes profitability is and its value is % The component that analyses productivity on sales is • and its value is The component that analyzes the leverage is + , and its value is Therefore, the ROE is
Cash
215
Marketable securities
75
Accounts receivable
450
Inventories
375
Land
100
Buildings
225
Equipment
140
Machinery
420
Furniture and
170
fixtures
Vehicles
25
Accumulated
265
depreciation
Preferred stock
100
Common stock (at
90
par)
Paid in Capital in
360
excess of par
Retained Earnings
(Includes net
210
income)
Sales
600
Net Income
105
Transcribed Image Text:Cash 215 Marketable securities 75 Accounts receivable 450 Inventories 375 Land 100 Buildings 225 Equipment 140 Machinery 420 Furniture and 170 fixtures Vehicles 25 Accumulated 265 depreciation Preferred stock 100 Common stock (at 90 par) Paid in Capital in 360 excess of par Retained Earnings (Includes net 210 income) Sales 600 Net Income 105
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