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...


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.

May 05, 2022
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