1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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 %

You might be interested in
In order to evaluate risk, management may also set qualitative risk classes. Rank these four projects from least risky to most r
Burka [1]

Answer:

Ranking projects from least risky to most risky:

1. Repair to old machinery.

2. Addition to normal product line.

3. Completely new market in United States.

4. Completely new market in South America.

Explanation:

As can be seen from the above scenario, the risk profile increases as the company's activities move away from the known, controllable, and internal arenas to the unknown, uncontrollable, and external arenas.  This implies that increasing uncertainty induces more risk.

6 0
3 years ago
Northwest Fur Co. started the year with $92,000 of merchandise inventory on hand. During the year, $425,000 in merchandise was p
Artyom0805 [142]

Answer:

$ 142,800.00  

Explanation:

The ending inventory can be computed by rearranging the cost of goods sold formula:

cost of goods sold=Beginning inventory+net purchases-ending inventory

ending inventory=beginning inventory+net purchases-cost of goods sold

beginning inventory is $92,000

Net purchases=purchases-discount+freight-in charges-purchase return

net purchases=$425,000-($425,000*1%)+$7000-($5000*99%)=$422,800.00  

cost of goods sold is $372,000

ending inventory=$92,000+$422,800-$372,000=$ 142,800.00  

8 0
4 years ago
Rina is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Rin
White raven [17]

Answer:

The answer is: B) People face trade-offs

Explanation:

A trade-off happens when you have to balance two (or three in this case) opposing situations.

Rina has to decide how to divide the time she can spend training. If she chooses to do one activity, she can´t do the other. So she has to balance the time spent on each activity, probably depending on which sport she needs to train the most.

8 0
3 years ago
The trial balance before adjustment of Taylor Swift Inc. shows the following balances.
ale4655 [162]

Answer:

A. Dr Bad Debt Expense$5,350

Cr Allowance for Doubtful account$5,350

B. Dr Bad Debt Expense $2,800

Cr Allowance for Doubtful account$2,800

Explanation:

Preparation of the journal entry for the estimated bad debts

A. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:

Dr Bad Debt Expense$5,350

Cr Allowance for Doubtful account$5,350

[(4%*90,000)-1,750]

B. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:

Dr Bad Debt Expense $2,800

Cr Allowance for Doubtful account$2,800

[(5%*90,000)-1,700]

3 0
3 years ago
f the project manager controls when and what people do while the functional managers control who will be assigned to the project
faust18 [17]

Answer:

The correct answer is Matrix.

Explanation:

In a matrix structure each manager is in charge of the results and tasks executed in his area. Employees are usually accountable to one person who generally manages the project and to another who directs a specific area. The great advantage of this structure is that it allows direct communication, making it possible to take corrective measures faster, in the same way it allows each person to focus on each task so that they can transmit some requirement to the closest person.

3 0
3 years ago
Read 2 more answers
Other questions:
  • Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Tests revealed that the tire's mileage is no
    12·2 answers
  • A company acquires a subsidiary and will prepare consolidated financial statements for external reporting purposes. For internal
    6·1 answer
  • How should silvio napoli deal with the challenges he is facing over transfer prices and limited technical cooperation from the e
    9·2 answers
  • List several measures that describe the size of the construction industry.
    7·2 answers
  • 2. Before the Interview If you do well in the application process and screening interview, you will be invited to a face-to-face
    8·1 answer
  • Why does supplier competition make it harder for an entrepreneur to be successful
    8·1 answer
  • Which of the following is one of the seven website design elements that marketers can use to produce an effective customer exper
    7·1 answer
  • Denzel Brooks opened a Web consulting business called Venture Consultants and completes the following transactions in March Marc
    6·1 answer
  • Kết luận sự thích ứng tâm lý của sinh viên năm nhất
    10·1 answer
  • everything else held constant, the interest rate on municipal bonds rises relative to the interest rate on treasury securities w
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!