Question: Given Ratio based on ending balances Year -1 Year 1 Year 2 Net profit (NP) $12,500 $13,750 $14,125 Total sales (TS) $290,000 $295,800 $301,716 Total
Given Ratio based on ending balances Year -1 Year 1 Year 2 Net profit (NP) $12,500 $13,750 $14,125 Total sales (TS) $290,000 $295,800 $301,716 Total assets (TA) $200,000 $190,000 $180,500 Total equity (TE) $60,000 $60,600 $61,206
What is the solution?
1. Find ROS%; ROA%; TAT; EM%; ROE%, assume;
a. ending balances,
b. average balances
2. Use DuPont Model to find ROE%, show all your calculations
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