The Du Pont Formula and Return on Total Assets. Industry A 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 $ 25,000 $30,000 (h)
Total assets $100,000 (e) $250,000
Total asset turnover (a) ( f) 0.4
Profit margin (b) 0.4% 5%
Return on total assets (ROA) (c) 2% (i)
First supply the missing data in the table above. Then comment on the relative performance of each company.
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