Log in

View Full Version : How to figure net income and du pont


Allegro1952
Jun 22, 2012, 09:18 AM
Trying to figure out what the gross profit or cost production is for this problem... unsure on how to solve it?

Ebersoll Mining:
Has $6 million in sales
ROE is 12%
Total assets turnover is 3.2x
The company is 50% equity financed
What is the net income?

ArcSine
Jun 22, 2012, 12:39 PM
Sales and the Assets Turnover amounts will give you Total Assets.

Total Assets and the "equity financing" percentage will give you Equity.

Equity and ROE give you Net Income.