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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
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Phoniex University
Oct-2001 - Nov-2016
Profitability ratios
Refer to the facts described in BE 5–32. Show the DuPont framework’s calculation of the three components of the 2016 return on shareholders’ equity for Anderson TV and Appliance.
BE 5–32
Profitability ratios
The 2016 income statement for Anderson TV and Appliance reported sales revenue of $420,000 and net income of $65,000. Average total assets for 2016 was $800,000. Shareholders’ equity at the beginning of the year was $500,000 and $20,000 was paid to shareholders as dividends. There were no other shareholders’ equity transactions that occurred during the year. Calculate the profit margin on sales, return on assets, and return on shareholders’ equity for 2016.
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