Use the following to answer questions
Pioneer Industries gathered the following year-end data (in thousands) for 2010 and 2009:
$$\begin{array} { l r r }
\text { Curent Assets } & \frac { 2010 } { 2009 } & \frac { 2345 } { \$ 365 } \
\text { Long-Tenn Arsets } & 790 & 720 \
\text { Curtert Liabilities } & 280 & 310 \
\text { Long-Term Liabilities } & 410 & 440 \
\text { Owners' Equity } & 445 & 335 \
\text { Net Sales } & 830 & 790 \
\text { Gross Margir } & 375 & 355 \
\text { Net Income } & 120 & 105
\end{array}$$
-The DuPont ROI for 2010 was:
A)53.6 x 32.0% = 17.2%
B)73.1 x 9.5% =6.9%
C)74.8 x 14.5% = 10.8%
D)84.3 x 10.8% = 9.1%

Question

Use the following to answer questions 
Pioneer Industries gathered the following year-end data (in thousands) for 2010 and 2009:
 $$\begin{array} { l r r } 
\text { Curent Assets } & \frac { 2010 } { 2009 } & \frac { 2345 } { \$ 365 } \
\text { Long-Tenn Arsets } & 790 & 720 \
\text { Curtert Liabilities } & 280 & 310 \
\text { Long-Term Liabilities } & 410 & 440 \
\text { Owners' Equity } & 445 & 335 \
\text { Net Sales } & 830 & 790 \
\text { Gross Margir } & 375 & 355 \
\text { Net Income } & 120 & 105
\end{array}$$
-The DuPont ROI for 2010 was:
A)53.6 x 32.0% = 17.2%
B)73.1 x 9.5% =6.9%
C)74.8 x 14.5% = 10.8%
D)84.3 x 10.8% = 9.1%

Quizplus · Accepted Answer

DuPont ROI = Net Income / Net Sales x Net Sales / Total Assets x Total Assets / Owners' Equity
= (120/830) x (830/((2345/365)+(790))) x ((2345/365) + 790)/445
= 0.1445 or 14.5% (rounded to one decimal place)
Therefore, the correct answer is C.

Use the Following to Answer Questions Pioneer Industries Gathered

Use the Following to Answer Questions
Pioneer Industries Gathered