Consider the following condensed financials for Crean and Crimson Foods: INCOME

Question

Consider the following condensed financials for Crean and Crimson Foods:

INCOME STATEMENT:

BALANCE SHEET AS OF 12/31/2013:

a) Find the net profit margin for the firm for 2013?

b) Find the asset turnover for the firm in 2013?

c) What is the equity multiplier for the firm in 2013?

d) What is the DuPont ratio for the firm in 2013?

2013 Sales $108,700.00 Cost of Goods Sold $65,220.00 Gross Margin $43,480.00 Depreciation $19,200.00 Administrative Costs $10,800.00 EBIT $13,480.00 Interest $4,000.00 Pre-tax income $9,480.00 Taxes $3,792.00 Net Income $5,688.00 Dividends $0.00 Addition to Retained Earnings $5,688.00

Explanation / Answer

a) Find the net profit margin for the firm for 2013=5688/108700=5.23%

b) Find the asset turnover for the firm in 2013=108700/132461=0.82

c) What is the equity multiplier for the firm in 2013=132461/55688=2.38

d) What is the DuPont ratio for the firm in 2013=5.23%*0.82*2.38=10.21%

the above are answers

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