EXERCISE 6: CALCULATING ROA USING THE DUPONTFINANCIAL SYSTEMThe following accounts are included in Eva's retail storefinancial statements:Cost of salesAdministrative expensesPrepaid expensesInventoriesDepreciation/amortizationCashTrade receivablesRevenueNon-current assetsDistribution costs$2,300,000170,00060,000300,00025,00025,000250,0003,000,0001,700,000200,000170Questions1. Calculate her ROA by using the DuPont financialsystem.2. What impact would there be on the ROA if therevenue account changed to $3,200,000? 20:49のVol)YE2 . 74%AaX exercise 5«Cost of sales1,700,000Trade receivables300,000Inventories400,0005 Examine financial statements by using the DuPont financial system.EXERCISE 6: CALCULATING ROA USING THE DUPONTFINANCIAL SYSTEMThe following accounts are included in Eva's retail storefinancial statements:Cost of sales$2,300,000Administrative expenses170,000Prepaid expenses60,000Inventories300,000Depreciation/amortization25,000Cash25,000Trade receivables250,000Revenue3,000,000Non-current assets1,700,000Distribution costs200,000170Questions1. Calculate her ROA by using the DuPont financialsystem.2. What impact would there be on the ROA if therevenue account changed to $3,200,000?CasesPg. 80169日ReaderContentsNotebookBookmarksFlashcards!

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Description: EXERCISE 6: CALCULATING ROA USING THE DUPONTFINANCIAL SYSTEMThe following accounts are included in Eva's retail storefinancial statements:Cost of salesAdministrative expensesPrepaid expensesInventoriesDepreciation/amortizationCashTrade receivablesRev

DuPont Analysis ROA = Profit Margin × Total Assets Turnover

Answered: Cost of sales $2,300,000 Administrative…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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EXERCISE 6: CALCULATING ROA USING THE DUPONT FINANCIAL SYSTEM The following accounts are included in Eva's retail store financial statements: Cost of sales Administrative expenses Prepaid expenses Inventories Depreciation/amortization Cash Trade receivables Revenue Non-current assets Distribution costs $2,300,000 170,000 60,000 300,000 25,000 25,000 250,000 3,000,000 1,700,000 200,000 170 Questions 1. Calculate her ROA by using the DuPont financial system. 2. What impact would there be on the ROA if the revenue account changed to $3,200,000?

20:49
の
Vol)
YE2 . 74%
Aa
X exercise 5
«
Cost of sales
1,700,000
Trade receivables
300,000
Inventories
400,000
5 Examine financial statements by using the DuPont financial system.
EXERCISE 6: CALCULATING ROA USING THE DUPONT
FINANCIAL SYSTEM
The following accounts are included in Eva's retail store
financial statements:
Cost of sales
$2,300,000
Administrative expenses
170,000
Prepaid expenses
60,000
Inventories
300,000
Depreciation/amortization
25,000
Cash
25,000
Trade receivables
250,000
Revenue
3,000,000
Non-current assets
1,700,000
Distribution costs
200,000
170
Questions
1. Calculate her ROA by using the DuPont financial
system.
2. What impact would there be on the ROA if the
revenue account changed to $3,200,000?
Cases
Pg. 80
169
日
Reader
Contents
Notebook
Bookmarks
Flashcards
!

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