compute the dupont framework ratios for company A for year three only. the income statement and balance sheet for company A follows. Compute A) return on equity, B) return on sales Compute A) return on equity, B) return on sales, Asset turnover, D) Asset-to-equity ratio.

Managerial Accounting: The Cornerstone of Business Decision-Making
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Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 19BEA
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  • compute the dupont framework ratios for company A for year three only. the income statement and balance sheet for company A follows. Compute A) return on equity, B) return on sales Compute A) return on equity, B) return on sales, Asset turnover, D) Asset-to-equity ratio.
Company A reported the following income statement data for the most recent three years:
Sales
Cost of goods sold
Operating expenses:
Marketing expense
R&D expense.
Administrative expense
Operating income.
Interest expense
Income before income taxes.
Income tax expense.
Net income.
Cash..
Accounts receivable
Inventory.
Current assets.
Property, plant, and equipment (net)
Total assets...
Accounts payable.
Short-term debt
Current fiabilities
Long-term debt.
Total liabilitles
Year 3
Pald-in capital
Retained earnings
Total liabilities and equities.
$ 350.000
(163,000)
7775
Year 2
TAST
Company A reported the following balance sheet data for the most recent three years:
Year 3
$ 260,000
(144,000)
(21,000)
(21,000)
(22,000)
(27,000)
(6,000)
(14,000,
(45.000)
(50,000)
(48,000)
$ 60,000
$ 94,000
(6,000)
$ 39,000
(11,000)
(7,000)
$ 88,000
$ 28,000
$ 53,000
(25,000)
(8,000)
(20,000:
$ 63.000 $ 20,000 $ 33,000
$ 8,000
18,000
36,000
$ 62,000
138,000
$200,000
$28,000
15,000
$ 43,000
52,000
$ 95,000
19,000
86,000
$200,000
Year 2
Year 1
$ 300,000
(156,000
$ 8,000
37,000
47,000
$ 92,000
126,000
$218,000
$ 39,000
20,000
$ 59,000
65,000
$124,000
19,000
75,000
$218,000
Year 1
$6,000
18,000
36,000
$ 60,000
123,000
$183,000
$ 21,000
15,000
$ 36,000
58,000
$ 94,000
39,000
70,000
$183,000
waje
Transcribed Image Text:Company A reported the following income statement data for the most recent three years: Sales Cost of goods sold Operating expenses: Marketing expense R&D expense. Administrative expense Operating income. Interest expense Income before income taxes. Income tax expense. Net income. Cash.. Accounts receivable Inventory. Current assets. Property, plant, and equipment (net) Total assets... Accounts payable. Short-term debt Current fiabilities Long-term debt. Total liabilitles Year 3 Pald-in capital Retained earnings Total liabilities and equities. $ 350.000 (163,000) 7775 Year 2 TAST Company A reported the following balance sheet data for the most recent three years: Year 3 $ 260,000 (144,000) (21,000) (21,000) (22,000) (27,000) (6,000) (14,000, (45.000) (50,000) (48,000) $ 60,000 $ 94,000 (6,000) $ 39,000 (11,000) (7,000) $ 88,000 $ 28,000 $ 53,000 (25,000) (8,000) (20,000: $ 63.000 $ 20,000 $ 33,000 $ 8,000 18,000 36,000 $ 62,000 138,000 $200,000 $28,000 15,000 $ 43,000 52,000 $ 95,000 19,000 86,000 $200,000 Year 2 Year 1 $ 300,000 (156,000 $ 8,000 37,000 47,000 $ 92,000 126,000 $218,000 $ 39,000 20,000 $ 59,000 65,000 $124,000 19,000 75,000 $218,000 Year 1 $6,000 18,000 36,000 $ 60,000 123,000 $183,000 $ 21,000 15,000 $ 36,000 58,000 $ 94,000 39,000 70,000 $183,000 waje
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