Question: Now, lets see your notes with your ratios, and then we can talk about possible strategies that will improve the ratios. In the dropdown lists
Now, lets see your notes with your ratios, and then we can talk about possible strategies that will improve the ratios. In the dropdown lists next to your values Im going to select correct if your calculation is correct and incorrect if your calculation is incorrect. Canis Major Veterinary Supplies Inc. DuPont Analysis Ratios Value Correct/Incorrect Ratios Value Correct/Incorrect Profitability ratios Asset management ratio Gross profit margin (%) 50.00 Total asset turnover 1.67 Operating profit margin (%) 20.92 Net profit margin (%) 22.66 Financial ratios Return on equity (%) 54.01 Equity multiplier 1.43 MADISON: OK, it looks like Ive got a couple of incorrect values, so show me your calculations, and then we can talk strategies for improvement. YOU: Ive just made rough calculations, so let me complete this table by inputting the components of each ratio and its value: Note: Do not round intermediate calculations. Round final answers to the nearest whole number. Canis Major Veterinary Supplies Inc. DuPont Analysis Calculation Value Profitability ratios Numerator Denominator Gross profit margin (%) / = Operating profit margin (%) / = Net profit margin (%) / = Return on equity (%) / = Asset management ratio Total asset turnover / = Financing ratios Equity multiplier / =
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