THE DU PONT FORMULA AND RETURN ON TOTAL ASSETS. Industry A has th et companies whose income statements and balance sheets are summarized below. Company X Company Y Company Z Sales $500.000 (d) (g) Net income S 25.000 $30.000 (h) Total assets S100.000 (e) $250.000 Total asset turnover (a) 0.4 Profit margin (h) 0.4% 50 Return on total assets (ROA) (c) 2% (i) Requirement: Supply the missing data in the table above.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Problem 3
THE DU PONT FORMULA AND RETURN ON TOTAL ASSETS. IndustryA has three
companies whose income statements and balance sheets are summarized below.
Company X
Company Y
Company Z
Sales
$500,000
(d)
(g)
Net income
S 25.000
$30.000
(h)
Total assets
S100.000
(e)
$250.000
Total asset turnover
(a1)
(/)
0.4
Profit margin
(h)
0.4%
Return on total assets (ROA)
(c)
2%
(i)
Requirement:
Supply the missing data in the table above.
Page 74 of 161
Transcribed Image Text:Problem 3 THE DU PONT FORMULA AND RETURN ON TOTAL ASSETS. IndustryA has three companies whose income statements and balance sheets are summarized below. Company X Company Y Company Z Sales $500,000 (d) (g) Net income S 25.000 $30.000 (h) Total assets S100.000 (e) $250.000 Total asset turnover (a1) (/) 0.4 Profit margin (h) 0.4% Return on total assets (ROA) (c) 2% (i) Requirement: Supply the missing data in the table above. Page 74 of 161
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