PM, AT, ROA, FL, and ROE accounting question. Thanks for the help! Please

ID: 2577102 • Letter: #

Question

** PM, AT, ROA, FL, and ROE accounting question. Thanks for the help!

** Please fill out the below table. Also please show work/formulas used below the table if you are able. Thanks again!

Summary income statements and balance sheets are presented for the three largest companies in the chemical industry for fiscal year 2001 (in millions). For additional information, their Web sites (and ticker symbols) are www.dupont.com (DD), www.dow.com (DOW), and www.ppg.com (PPG). Income Statement DuPont Dow PPG Revenues $24,726 $27,805 $8,169 COGS 16,727 22,015 5,137 Gross Profit 7,999 5,790 3,032 SG&A Expenses 4,513 2,807 1,764 Net Income 4,339 (385) 387 Balance Sheet DuPont Dow PPG Cash & Market Securities $5,763 $220 $108 Receivables, net 3,903 5,098 1,416 Inventories 4,215 4,440 904 Total Current Assets 14,801 10,308 2,703 Fixed Assets, net 13,287 13,579 2,752 Total Assets 40,319 35,515 8,452 Total Current Liabilities 8,067 8,125 1,955 Total Liabilities 25,867 25,522 5,372 Total Equity 14,452 9,993 3,080 The following additional information is provided for fiscal year 2000 (in millions): DuPont Dow PPG Inventory $4,658 $3,463 $1,121 Receivables, net 4,552 5,385 1,563 Working Capital 2,401 1,387 550 Fixed Assets, net 13,287 13,579 2,752 Total Assets 39,426 27,645 9,125 Total Equity 13,299 9,686 3,097

Explanation / Answer

= 4339/24726

=17.55%

=(385)/27805

= (1.38%)

=387/8169

= 4.74%

=24726/40319

=0.613 times

=27805/35515

= 0.783 times

=8169/8452

=0.967 times

=0.613*17.55%

= 10.758%

=0.783*(1.38%)

= (1.081%)

0.967*4.74%

=4.584%

=40319/14452

=2.79

=35515/9993

=3.554

=8452/3080

=2.744

=2.79* 10.758%

= 30.01%

=3.554* (1.081%)

=(3.842%)

=2.744* 4.584%

= 12.578%

Profit margin = Net Profit / Revenue

Asset Turnover = Revenue / Total Assets

Return on assets = Net Profit/Total Assets = Profit Margin * Asset turnover

Financial Leverage = Total Assets/ Equity

Return on Equity = Net Profit/Equity = Return on assets * Financial Leverage

DuPont Dow PPG Profit Margin