Question

What are the two measures of profitability that The DuPont system merges the income statement and balance sheet into? A. net profit margin and return on total assets. B. net profit margin and return on equity. C. return on total assets and return on equity. D. net profit margin and price/earning ratio.

Answer 1

Answer:

Return on total asset and return on equity

Explanation:

These two financial ratio analysis provides the most potent way to arrive at the profitability and overall financial health of a company. The balance sheet and income statement thus provide the line items and figures required to compute such. With Dupont system, the balance sheet item is able to be merged with the income statement to arrive at the overall company's profitability.

Answer 2

Answer:

The Answer to this question is A. Net profit margin and return on total assets

Explanation:

The Duopoint system helps to determine what is driving a company's return on investment.

The Net profit margin and return on total assets helps to understand the profitability and the operating efficiency of the company. The Duopoint system uses both the income statement as well as the balance sheet to examine the efficiency of the company and  to identify the   areas to look at in case there is a weakness detected.