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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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Which psychologist might work as a consultant for a large financial services company?
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Answer:

An industrial organizational psychologist

Explanation:

Industrial-organizational psychologists are using psychological concepts and techniques of study to address business challenges and improving the quality of life. They are studying efficiency and managerial staff in the work environment, and working designs for employees.

They get a look for a firm or institution's cohesion and character.And they are working with executives to help coordinate strategies, perform assessments so practice sessions, and establish a future plan.

5 0
3 years ago
You invested 50% of the wealth in stock A and the remaining 50% in stock B. The expected rates of returns on A and B are given b
tresset_1 [31]

Answer:

B. 1.291%

Explanation:

The computation of the standard deviation is shown below;

= 2000 + 2001 + 2002 +  2003

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= stdev( 15% + 16%  + 17% + 18%)

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Hence, the correct option is b.

7 0
2 years ago
Incline Company generated $4,900,000 in revenue selling 4,025 units of its only product. Each unit has a contribution margin of
Hatshy [7]

Answer:

23%

Explanation:

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Selling price per unit = $4,900,000 ÷ 4,025 units

= 1217.39

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= $280 ÷ 1217.39

= 23%

Therefore for computing the contribution margin ratio we simply divide selling price by contribution margin.

6 0
2 years ago
Suppose that the Federal Reserve conducts open market operations by purchasing $1,000 worth of government securities from Bank A
notsponge [240]

Answer:

$100 in bank A

$900 in bank B

Explanation:

Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.

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  • bank B = $1,000 x 90% = $900

If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.

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3 years ago
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities and stockholders' equity
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Answer: e

Explanation :

A balance sheet is a statement of the financial position of a business that lists the assets, liabilities and owner's equity at a particular point in time. In other words, the balance sheet illustrates your business's net worth.

The balance sheet may also have details from previous years so you can do a back-to-back comparison of two consecutive years. This data will help you track your performance and will identify ways to build up your finances and see where you need to improve.

A balance sheet reports a company's assets, liabilities and shareholders' equity at a specific point in time, and provides a basis for computing rates of return and evaluating its capital structure . the balance sheet is divided into two sides (or sections). The left side of the balance sheet outlines all a company’s assets. On the right side, the balance sheet outlines the companies liabilities and shareholders’ equity. On either side, the main line items are generally classified by liquidity. More liquid accounts like Inventory, Cash, and Trades Payables are placed before illiquid accounts such as Plant, Property, and Equipment (PP&E) and Long-Term Debt. The assets and liabilities are also separated into two categories: current asset/liabilities and non-current (long-term) assets/liabilities.

3 0
3 years ago
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