I want to answer Oscar's Dog House has a net profit of $56,000and sales of 1,000,000. It has total assets of$8,000,000. Its book value/equity is $5,300,000and it pays out 35% of earnings as dividends.Required:a. What's its net profit margin, equity multiplier,and total asset turnover ratio?b. What is the return on equity using the DuPontIdentity formula?

Let's break down the calculations step by step. Part (a): Calculating Net Profit Margin, Equity…

Answered: Oscar's Dog House has a net profit of…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

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Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 5 percent and its return on assets (investment) is 22.5 percent. What is its assets turnover? (Round your answer to 2 decimal places.) b. If the Butters Corporation has a debt-to-total-assets ratio of 55.00 percent, what would the firm's return on equity be? (Input your answer as a percent rounded to 2 decimal places.) c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 50.00 percent? (Input your answer as a percent rounded to 2 decimal places.)
High mountain foods has an equity multiplier of 1.72 a total asset turnover of 1.16 and a profit margin of 4.5 percent. What is the return on assets?
Is it possible to determine net income?
Answer? ? Financial accounting
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Using the DuPont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporation has a profit margin of 5.5 percent and its return on assets (investment) is 15.5 percent. What is its assets turnover? Note: Round your answer to 2 decimal places. Assets turnover ratio b. If the Butters Corporation has a debt-to-total-assets ratio of 25.00 percent, what would the firm's return on equity be? Note: Input your answer as a percent rounded to 2 decimal places. Return on equity % Return on equity times c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 20.00 percent? Note: Input your answer as a percent rounded to 2 decimal places. $
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