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    Iffy Company and Model Company

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    DuPont Framework
    The numbers below are for Iffy Company and Model Company for the year 2006:

    Iffy Model
    Cash $ 120 $ 900
    Accounts receivable 600 4,500
    Inventory 480 6,000
    Property, plant, and equipment 3,440 15,000
    Total liabilities 3,190 18,150
    Stockholders' equity ...

    Solution Summary

    This solution is comprised of a detailed explanation to compute return on equity, return on sales, asset turnover, and the assets-to-equity ratio for both Iffy and Model.