m Cengage Assignment- Analysis of Financial Statements Balance Sheet Data Income
ID: 2811355 • Letter: M
Question
m Cengage Assignment- Analysis of Financial Statements Balance Sheet Data Income Statement Data Cash Accounts receivable Inventory $1,300,000 Accounts payable $1,560,000 Sales $26,000,000 13,000,000 13,000,000 6,500,000 6,500,000 873,600 5,626,400 1,969,240 $3,657,160 2,600,000 Accruals 3,900,000 Notes payable 7,800,000 Current liabilities 520,000Cost of goods sold 2,080,000 Gross profit 4,160,000 Operating expenses ,200,000 EBIT 9,360,000 Interest expense 1,560,000 EBT 4,680,000 Taxes 6,240,000 Net income Current assets Long-term debt Total liabilities Common stock Net fixed assets 7,800,000 Retained earnings Total equity Total debt and equity Total assets $15,600,000 $15,600,000 If I remember correctiy, the DuPont equation breaks down our ROE into three component ratios: the , the total asset turnover ratio, and the And, according to my understanding of the DuPont equation and its calculation of ROE, the three ratios provide insights into the company's , effectiveness in using the company's assets, and Now, let's see your notes with your ratios, and then we can talk about possible strategies that will improve the ratios. I'm going to check the box to the side of your calculated value if your calculation is correct and leave it unchecked if your calculation is incorrect.Explanation / Answer
Profit Margin, Assets to Equity
Profitability and Leverage
Use more debt financing in its capital structure and increase the equity multiplier.
Increase the efficiency of its assets so that it generates more sales with each dollar of asset investment and increases the company’s total asset turnover.
Sales 26000000 Gross Profit 13000000 Gross Profit Margin % 50.00% EBIT 6500000 Operating Profit Margin % 25.00% Net Profit 3657160 Net Profit Margin % 14.07% Total Equity 6240000 ROE 58.61% Total Asset 15600000 Asset Turnover 1.666667 Equity Multiplier 2.500Related Questions
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