Red Oak Manufacturing The following information is available for the year ended December 31,2015:
$\begin{array}{l}
\text { Net income } &\$ 844,200 \
\text { Net sales } &6,809,000 \
\text { Average total assets } &5,911,000 \
\text { Average stockholders' equity } &2,575,000
\end{array}$

-Refer to Red Oak Manufacturing.The total leverage per the DuPont analysis computation is:

Question

Red Oak Manufacturing The following information is available for the year ended December 31,2015:
$\begin{array}{l}
\text { Net income } &\$ 844,200 \
\text { Net sales } &6,809,000 \
\text { Average total assets } &5,911,000 \
\text { Average stockholders' equity } &2,575,000
\end{array}$

-Refer to Red Oak Manufacturing.The total leverage per the DuPont analysis computation is:

Quizplus · Accepted Answer

The total leverage in DuPont analysis is calculated as the ratio of average total assets to average stockholders' equity: $ \frac{5,911,000}{2,575,000} = 2.30 $.

Red Oak Manufacturing the Following Information Is Available for the Year