1
answer
0
watching
391
views

** PM, AT, ROA, FL, and ROE accounting question. Thanks for the help!

Summary income statements and balance sheets are presented for the three largest companies in the chemical industry for fiscal year 2001 (in millions). For additional information, their Web sites (and ticker symbols) are www.dupont.com (DD), www.dow.com (DOW), and www.ppg.com (PPG).
Income Statement
DuPont Dow PPG
Revenues $24,726 $27,805 $8,169
COGS 16,727 22,015 5,137
Gross Profit 7,999 5,790 3,032
SG&A Expenses 4,513 2,807 1,764
Net Income 4,339 (385) 387
Balance Sheet
DuPont Dow PPG
Cash & Market Securities $5,763 $220 $108
Receivables, net 3,903 5,098 1,416
Inventories 4,215 4,440 904
Total Current Assets 14,801 10,308 2,703
Fixed Assets, net 13,287 13,579 2,752
Total Assets 40,319 35,515 8,452
Total Current Liabilities 8,067 8,125 1,955
Total Liabilities 25,867 25,522 5,372
Total Equity 14,452 9,993 3,080
The following additional information is provided for fiscal year 2000 (in millions):
DuPont Dow PPG
Inventory $4,658 $3,463 $1,121
Receivables, net 4,552 5,385 1,563
Working Capital 2,401 1,387 550
Fixed Assets, net 13,287 13,579 2,752
Total Assets 39,426 27,645 9,125
Total Equity 13,299 9,686 3,097

** Please fill out the below table. Also please show work/formulas used below the table if you are able. Thanks again!

(4) Given the information presented on Sheet 1, calculate the DuPont Model for the three chemical companies for fiscal year 2001. Show calculations following the table. Assume all three companies had the same total common equity as total equity.
DuPont Dow PPG
Profit Margin (PM)
Asset Turnover (AT)
Return on Assets (ROA)
Financial Leverage (FL)
Return on Equity (ROE)

For unlimited access to Homework Help, a Homework+ subscription is required.

Tod Thiel
Tod ThielLv2
29 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Related questions

Weekly leaderboard

Start filling in the gaps now
Log in