Question: The following accounts are included in Eva s retail store financial

The following accounts are included in Eva’s retail store financial statements:
Cost of sales .................$2,300,000
Administrative expenses .......... 170,000
Prepaid expenses ............. 60,000
Inventories ................... 300,000
Depreciation/amortization .......... 25,000
Cash ............................ 25,000
Trade receivables ....................... 250,000
Revenue .................................... 3,000,000
Non-current assets .................... 1,700,000
Distribution costs ..................... 200,000

1. Calculate her ROA by using the DuPont financial system.
2. What impact would there be on the ROA if the revenue account changed to $3,200,000?


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  • CreatedDecember 03, 2014
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