Purchase Solution

DuPONT SYSTEM OF RETURN ON INVESTMENT

Not what you're looking for?

Ask Custom Question

Please see attachment.

ASSIGNMENT - DuPONT SYSTEM OF RETURN ON INVESTMENT

Instructions to record the ratios for return on investment (assets) using the DuPont system.

Instructions. You will need a small calculator to complete the assignment.

1) Enter the correct figures from the Income Statement and Balance Sheet on the worksheet for the appropriate ratios in the yellow squares.
2) After entering the figures for one version on the worksheet, calculate the ratios by dividing the upper figure(numerator) by the lower figure (denominator) and enter the figure in the yellow cell below the ratio.
3) You may create formulas for the purpose of calculating the ratio and multiplying the ratio for the final (tan) ROI ratio.
4) Carry the decimal only to two places.
Requirements:
1) There are six scenarios or versions. Complete each version in turn before going to the next.
2) Each version changes one or more components of the individual ratio and the change is shown in red above the string of ratios needed to arrive at ROI system developed by DuPont.

Attachments
Purchase this Solution
Solution Summary

Reponse explains the steps to calculate and analyze the DuPONT SYSTEM OF RETURN ON INVESTMENT

Solution Preview

Please see attachment.

ASSIGNMENT - DuPONT SYSTEM OF RETURN ON INVESTMENT

Instructions to record the ratios for return on investment (assets) using the DuPont system.

Instructions. You will need a small calculator to complete the assignment.

1) Enter the ...

Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

View More Free Quizzes
Related BrainMass Solutions

  • Return on investment

    190490 Return on investment.. Return on investment is the result of multiplying ?

  • How firms use transfer prices strategically, Role of GAAP

    project revenue $3,600,000 Expected annual project expenses $3,200,000 Required rate of return 12% Current division return on investment 18% d) Perform DuPont Analysis on this project e) What is the project's residual income?

  • DuPont analysis

    DuPont analysis with operating ratios 9. Return on investment (using ending liabilities and equity) 10. Return on equity (using ending common equity) d.

  • DuPont Formula and Industries

    The DuPont Formula states that a company's return on investment equals the product of its profit margin and its total asset turnover. Therefore, Return on Investment=(Net Income/Sales)*(Sales/Total Assets).

  • Computing return on investment and residual income

    Using the DuPont Method, Return on investment = Net Operating Margin * Asset Turnover Return on Investment = Net income/Sales * Sales/Average operating assets Division X: Return on investment = $54,000/$900,000 * $900,000/$600,000 Return on investment

  • ROI using the DuPont method and Residual Income

    Use the DuPont method to analyze the return on sales and capital turnover. b. Assume the Health Club--Spa is considering installing new exercise equipment.

  • Financial Accounting: Pacific Capital Bank

    The return on investment allows DuPont to measure the performance of each divisions and department within the bank as a use of profit margin and assets turnover (Crundwell, 2008).

  • Du Pont analysis

    Can you explain how the ratio On Page 797 of the Brealey textbook, Brealey discusses how the Dupont System links Return on Assets (ROA) and Return on Equity (ROE) ratios with other financial ratios in useful ways.

  • Questions Regarding Corporate Investment Analysis

    First, the DuPont formula is stated as follows: Return on equity = profit margin x asset turnover x equity multiplier Return on equity = net profit/equity = net profit/sales x sales/assets x assets/equity Second, DuPont thus gives a more detailed

View More Related Solutions