Suppose that the Bethesda Mining Company had sales of $2,751,332 and net income of $86,432 for the
Question:
Suppose that the Bethesda Mining Company had sales of $2,751,332 and net income of $86,432 for the year ending December 31, 2019. Calculate the DuPont identity.
Bethesda Mining Company reports the following balance sheet information for 2018 and 2019.
BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Liabilities and Owners' Equity Assets Current assets Current liabilities $ 21,182 $ 24,141 Accounts payable $180,108 $190,767 Cash Notes payable 51,036 59,935 83,179 $263,287 Accounts receivable 98,175 $288,942 Inventory Total 120,589 142,718 $192,807 $226,794 $305,000 $340,000 Total Long-term debt Owners' equity Common stock and pai $165,000 $178,000 surplus Accumulated retained earnings Fixed assets 235,445 283,578 $775,925 $863,726 $1,090,520 $400,445 $968,732 $461,578 $1,090,520 Net plant and equipment Total $968,732 Total liabilities and owners' equity Total assets
Step by Step Answer:
Using the DuPont identity to calculate ROE we ...View the full answer
Essentials of Corporate Finance
ISBN: 978-1260013955
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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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