The following information is available for the year ended December 31, Year 1:
$\begin{array}{lc}
\text { Net income } & \$ 844,200 \
\text { Net sales } & 6,809,000 \
\text { Average total assets } & 5,911,000\\text { Average shareholders' equity }&2,575,000
\end{array}$
-Refer to the figure Red Oak Manufacturing.What is the DuPont analysis return on equity (ROE)?

Question

The following information is available for the year ended December 31, Year 1:
 $\begin{array}{lc}
\text { Net income } & \$ 844,200 \
\text { Net sales } & 6,809,000 \
\text { Average total assets } & 5,911,000\\text { Average shareholders' equity }&2,575,000
\end{array}$
-Refer to the figure Red Oak Manufacturing.What is the DuPont analysis return on equity (ROE)?

Quizplus · Accepted Answer

ROE = Net income / Average shareholders' equity * Net sales / Average total assets= 844,200 / 2,575,000 * 6,809,000 / 5,911,000= 32.8%

The Following Information Is Available for the Year Ended December