What is the company Roe? XYZ Company reported sales of $450,000, net income of $27,000,and year-end assets of $300,000. The company's debt-to-assets ratiois 40%. Using the DuPont equation, what is the company's ROE?

Step 1: To get the ROE, we will be using the expanded formula which is called the Du Pont Equation.…

Answered: XYZ Company reported sales of $450,000,…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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Last year Ross Inc. had sales of $330,000 and a net income of $20,000, and its year-end assets were $250,000. The firm's total-debt-to-total-assets ratio was 40.00%. Based on the DuPont equation, what was the ROE? A. 10.41% B. 14.80% C. 13.33% D. 12.63% E. 9.06%
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XYZ Company reported sales of $450,000, net income of $27,000, and year-end assets of $300,000. The company's debt-to-assets ratio is 40%. Using the DuPont equation, what is the company's ROE?