(a) What is DuPont analysis and how does it aid in financial analysis? (7) (b) Explain your answer with the help of following required calculations of M/S Platinum Enterprises: - Year 2020 Year 2019 Net Income 52,500 40,000 Net Sales 1,050,000 1,000,000 Average Total Assets Average Equity 230,000 200,000 170,000 160,000 Required: i. Net Profit Margin ii. Assets Turnover ii. Financial Leverage Ratio iv. Comment on the results.

(a) What is DuPont analysis and how does it aid in financial analysis? (7) (b) Explain your answer with the help of following required calculations of M/S Platinum Enterprises: - Year 2020 Year 2019 Net Income 52,500 40,000 Net Sales 1,050,000 1,000,000 Average Total Assets Average Equity 230,000 200,000 170,000 160,000 Required: i. Net Profit Margin ii. Assets Turnover ii. Financial Leverage Ratio iv. Comment on the results.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 81E

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