Chapter 14, Problem 14.3.3P

To determine

Concept Introduction:

DuPont analysis is an Analysis to examine the Return of Equity (ROE) of a company by various means which includes Profit margin, Asset turnover and financial leverage.

Divisional income statement shows the Profit or Losses which the operating division generates during the accounting year after deducting cost of goods sold and operating expenses.

Recommendation made for expansion of division