As you learned in Chapter 17, the Du Pont return on investment formula calculates return on investment
Question:
As you learned in Chapter 17, the Du Pont return on investment formula calculates return on investment (return on assets) using return on sales and asset turnover. Using the following information, determine the missing amounts:
Case 1 $400,000 $600,000 Case 2 Case 3 Assets Sales Net income Return on sales Return on assets Assot turnover $100,000 $45,000 6% 15% 20%
Step by Step Answer:
Case 1 Case 2 Case 3 Assets 400000 300000 100000 Sales 600000 900000 500000 Net Income 36000 45000 2...View the full answer
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
Related Video
The Dupont analysis is an expanded return on equity formula, calculated by multiplying the net profit margin by the asset turnover by the equity multiplier. The DuPont analysis is also known as the DuPont identity or DuPont model.This Video will guide on how to calculate return on Equity and estimate profitability of shareholders using DuPont Analysis.
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