In this chapter, we discussed the DuPont model. Using that framework, find the missing amount in each case below:
Case 1: ROE is 10 percent, net earnings are $ 300,000, total asset turnover ratio is 5, and net sales are $ 1,000,000. What is the amount of average shareholders’ equity?
Case 2: Net earnings are $ 440,000, net sales are $ 8,000,000, average shareholders’ equity is $ 2,000,000, ROE is 22 percent, and total asset turnover ratio is 8. What is the amount of average total assets?
Case 3: ROE is 15 percent, net profit margin ratio is 10 percent, total asset turnover ratio is 5, and average total assets are $ 1,000,000. What is the amount of average shareholders’ equity?
Case 4: Net earnings are $ 150,000, ROE is 15 percent, total asset turnover ratio is 5, net sales are $ 1,000,000, and financial leverage is 2. What is the amount of average total assets?