A company’s comparative statements are given below. Please conduct the following analyses:c. Calculate the three profitability ratios for year 2017 and show how ROE can be derived from the DuPont formula for this company.d. What do the analyses tell you about the company’s financial performance? Year ended December 31,(in millions)201820172016Revenue$5,000$4,000$3,000COGS(3,200)(3,000)(2,500)Gross Profit1,8001,000500Depreciation(500)(450)(400)SG&A(300)(300)(300)Interest(50)(50)(50)Earnings Before Tax950200(250)Таx(225)(20)Net Earnings725180-250 Year ended December 31,(in millions)201820172016ASSETSCash$5,405$6,680$7,000Accounts Receivable2,0002,5001,000Inventory15,00012,00014,000Current Assets22,40521,18022,000Property Plant & Equipment50,00045,00040,000Total Assets72,40566,18062,000LIABILITIESCurrent Portion of Debt$3,000$2,000$3,500Accounts Payable1,0001,5001,000Current Liabilities4,0003,5004,500Long Term Debt25,00020,00015,000Total Liabilities29,00023,50019,500EQUITYShare CapitalRetained EarningsShareholders' EquityTotal Liabilities & Equity30,00030,00030,00013,40512,68012,50043,40542,68042,50072,40566,18062,000

Details from the question : No. Particulars Amount $ 1 Gross profit for 2017 1,000 2 Revenue…

A company’s comparative statements are given below. Please conduct the following analyses: c. Calculate the three profitability ratios for year 2017 and show how ROE can be derived from the DuPont formula for this company. d. What do the analyses tell you about the company’s financial performance?

A company’s comparative statements are given below. Please conduct the following analyses: c. Calculate the three profitability ratios for year 2017 and show how ROE can be derived from the DuPont formula for this company. d. What do the analyses tell you about the company’s financial performance?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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