The below question relates to the below C Manufacturings 2020 Income Statement and Balance Sheet:

Suppose the management of C Manufacturing wishes to use the DuPont Model to derive insights on their ROE. What was their 2020 profit margin?

 

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C Manufacturing 2020 Balance Sheet Cash Inventories Accounts Receivable Net Fixed Assets Total Assets Sales COGS S, G & A EBIT Interest Earnings Before Tax Taxes Net Income (Earnings After Tax) 20,000 20,000 25,000 65,000 C Manufacturing 2020 Income Statement Dividends Retained Earnings 180,000 245,000 150,000 50,000 30,000 70,000 10,000 60,000 24,000 36,000 10,800 25,200 Accounts Payable Notes Payable Long-Term Debt Common Stock ($1 par) Retained Earnings Total Equity Total Liabilities + Owner's Equity 10,000 5,000 15,000 80,000 100,000 50,000 150,000 245,000 C Manufacturing 2020 Balance Sheet Cash Inventories Accounts Receivable Net Fixed Assets Total Assets Sales COGS S, G & A EBIT Interest Earnings Before Tax Taxes Net Income (Earnings After Tax) 20,000 20,000 25,000 65,000 C Manufacturing 2020 Income Statement Dividends Retained Earnings 180,000 245,000 150,000 50,000 30,000 70,000 10,000 60,000 24,000 36,000 10,800 25,200 Accounts Payable Notes Payable Long-Term Debt Common Stock ($1 par) Retained Earnings Total Equity Total Liabilities + Owner's Equity 10,000 5,000 15,000 80,000 100,000 50,000 150,000 245,000

Answer rating: 100% (QA)

Calculate the profit margin for C Manufacturing in 2020 Given ... View the full answer