Question: HELP 1) 2) If we know that a firm has a net profit margin of 4.7%, total asset turnover of 0.64, and a financial leverage
HELP
If we know that a firm has a net profit margin of 4.7%, total asset turnover of 0.64, and a financial leverage multiplier of 1.45, what is its ROE? What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity? The firm's ROE is %. (Round to two decimal places.) What is the advantage to using the DuPont system to calculate ROE over the direct calculation of earnings available for common stockholders divided by common stock equity? (Select from the drop-down menus) Observe the modified DuPont formula (see and notice that each component can be compared with industry standards to assess the firm's performance. Therefore, the advantage of using the Dupont system is that ROE is broken into three distinct components. Starting at the right we seo how has increased assets over the owners' original equity. Next, moving to the left, we see how efficiently the firm used its to generate sales. Finally, the V shows the measure of profitability on sales. Cash receipts A firm has actual sales of $62,000 in April and $62,000 in May. It expects sales of $67,000 in June and $98,000 in July and in August. Assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following 2 months, what are the firm's expected cash receipts for June, July, and August? Complete the cash receipts table below: (Round to the nearest dollar.) May June April 62,000 $ August 98,000 Sales $ 62,000 $ July 98,000 $ $ 67,000 $ Cash sales $ $ S $ Collections: $ $ $ $ Lag 1 month Lag 2 months $ $ $ Total cash receipts $ $ $ 1)
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