22. Use the following financial information to answer this question. Balance She

Question

22. Use the following financial information to answer this question. Balance Sheets as of December 31, 2007 and 2008 2007 2008 2007 2008 Assets Liabilities and Owners' Equity Cash Accounts receivable Inventory Net fixed assets 390 280 1,700 2,000 2,500 3,000 Common stock1,000 800 440 S 270 680 560 Accounts payable S 450 310 630 Notes payable Long-term debt 300 Retained earnings 440 1,030 Total liabilities and owners' equity $3.820 S4.500 Total assets $3.890 $4,500 2008 Income Statement Sales Cost of goods sold Depreciation Interest Taxes Net income $5,790 4,140 380 60 15 S 895 The values of the three components of the Du Pont identity are: a. .15458; 1.28667; .40667. b. .15458; 1.28667; 2.45902. c. .19889; 1.28667; 2.45902. d. .19889; 1.48843; 2.45902. e. .19889; 1.48843; 2.7013

Explanation / Answer

Net profit margin=net income/sales=895/5790=.15458

asset turnover=sales/assets=5790/4500=1.28667

equity multiplier=asset/equity=4500/(800+1030)=2.45902

ther above are three components of the Du point

so answer will be option b

the above is answer..

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