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Can you show me the solutions to these questions and provide a short explanation of how you arrived at the answers?

Can you show me the solutions to these questions and provide a short explanation of how you arrived at the answers? If you can answer them within 2.5 hrs

  • 1. Du Pont Analysis
  • Gardial& Son has an ROAof 12%, a 5% profit margin, and a return on equityto20%. What is the company’s total assets turnover? What is the firm’s equity multiplier?

Answers

S/TA = 2.4

TA/E = 1.67


2. Balance Sheet Analysis

Complete the balance sheet and sales information in the table that follows fro J. White Industries using the following financial data:

Total assets turnover: 1.5

Gross profit margin on sales:(Sales-Cost of goods sold)/Sales = 25%

Total liabilities-to-assets ratio: 40%

Quick ratio: 0.80

Days sales outstanding (based on 365-day year): 36.5 days 

Inventory turnover ratio: 3.75


Partial Income          Statement Information

Sales                           ________________________

Cost of goods sold   ________________________     


Balance Sheet

Cash                            ________________________     Accounts payable                 ___________________________

Accounts receivable ________________________     Long-term debt                     ________50,000____________

Inventories                 ________________________     Common Stocks                   ___________________________

Fixed assets               ________________________      Retained earnings               ________100,000___________

Total assets                _______$400,000_______      Total liabilites and equity  ____________________________


Answers

Sales =$60,000

COGS = $450,000

Cash = $28,000

AR = $60,000

Inv. = $120,000

FA = $192,000

AP = $110,000

Common Stock = $140,000




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Top Answer

Dear Student, Please find attached... View the full answer

9622534.xls

Solution-1
ROA
Profit Margin
Return of Equity 12%
5%
20% ROA = Profit margin * Total asset turnover
12% = 5% * Total asset turnover
12% / 5% = Total asset turnover
2.4 = Total asset turnover
ROE =...

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