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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?

This question was answered on Jul 19, 2016. View the Answer

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 =...

This question was asked on Jul 19, 2016 and answered on Jul 19, 2016 for the course GB550 1 at Kaplan University.

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