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strojnjashka [21]
3 years ago
6

Western Wear has total sales of $642,100, EBIT of $93,900, net income of $50,800, current assets of $153,500, total assets of $6

58,000, current liabilities of $78,900, and total liabilities of $213,600. What are the values of the three components of the DuPont identity?
Business
1 answer:
Shtirlitz [24]3 years ago
5 0

Answer:

The values of the three components of the DuPont identity are Profit Margin =  7.91 %, Total Assets Turnover = 0.98 and Rate of return on asset = 7.75 %

Explanation:

The DuPont identity was developed by managers for evaluating performance. The DuPont identity shows how the return on equity is affected  asset turnover, the profit margin and leverage.

The Profit margin times the total assets turnover is called the Du Pont equation and it gives the Rate of return on asset (ROA).

ROA = Profit Margin x Total assets turnover

where,

Profit Margin = Net Income ÷ Sales

                       = $50,800 ÷ $642,100

                       = 7.91 %

Total Assets Turnover = Sales ÷ Total Assets

                                      = $642,100 ÷ $658,000

                                      = 0.98

therefore,

ROA = 7.91 % x 0.98 = 7.75 %

Conclusion

The values of the three components of the DuPont identity are Profit Margin =  7.91 %, Total Assets Turnover = 0.98 and Rate of return on asset = 7.75 %

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Consider a firm with a 2013 net income of $20 million, revenue of $60 million, and cost of goods sold of $25 million. If the bal
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Answer:

Weeks of supply = 4.16 weeks

Explanation:

given data

net income = $20 million

revenue = $60 million

cost of goods sold = $25 million

inventory = $2 million

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to find out

how many weeks of supply does the firm hold

solution

we know here that Weeks of supply will be express as

Weeks of supply = \frac{average inventory}{cost of goods sold} × 52 weeks          ....................................1

so put here value we get weeks of supply

Weeks of supply =  \frac{2}{25} × 52 weeks

Weeks of supply = 4.16 weeks

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3 years ago
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Bond Price​= $846.3

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Giving the following information:

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<u>To calculate the price of the bond, we need to use the following formula:</u>

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3 years ago
Match the following terms to their definitions: 1. privatization 2. restructuring 3. agent 4. leveraged buyouts 5. underpricing
RUDIKE [14]

Answer:

1) UNDERWRITE involves the act of taking on any risk that might be related with the issue of a new security.

2. BEST EFFORTS is the responsibility of sharing a security without transferring the risk associated with the new issue from the company to the investors.

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What is the purpose of writing a topic sentence?
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The correct answer is option C. To summarize the main point of the paragraph

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A topic sentence is the most important part of a paragraph. The main purpose of a topic sentence is to provide a concise statement that reflects the purpose of the paragraph or the information that is going to be provided in the paragraph effectively.

It is usually the first sentence of a paragraph and becomes the opening statement of a paragraph in formal writings.

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