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Please help me compute the ratios in the DuPont model for year 2. Required Infor

ID: 2524554 • Letter: P

Question

Please help me compute the ratios in the DuPont model for year 2.

Required Information 2. Compute the ratios in the DuPont model for Year 2. (Round your answers to 2 decimal places.) $ 167.000 100,000 Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense $ 190,000 112,000 78,000 56,000 22,000 8,000 $ 14,000 67,000 53,000 Return on equity Return on assets Total asset turnover Net profit margin Financial leverage Pretax income Income tax 14,000 4,000 10,000 Net income $ $ 4,000 14,000 40,000 45,000 $ 103,000 Balance sheet: Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (10% interest) Common stock ($5 par value, 6,000 shares outstanding) $ 7,000 18,000 34,000 38,000 $ 97,000 References eBook & Resources Worksheet Learning Objective: 13-03 Compute and interpret component percentages. Learning $ 16,000 45,000 30,000 12,000 $ 103,000 $ 17,000 45,000 30,000 5,000 $ 97,000 Difficulty: 3 Hard Learning Objective: 13-04 Compute and interpret profitability ratios. Retained earnings Total liabilities and stockholders' equity Check my work

Explanation / Answer

Return on Equity =Net Income/Share holders equity 29% Return on Assets =Net Income/Total Assets 10% Total Asset Turnover =Cost goods of sold/Total Assets 103% Net Profit margin =Net Profit/Sales 6% Financial Leverage =Total Asset value/Total net equity 277%

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