Reference no: EM132662529
The following balance sheet and income statement is for XYZ Pvt. Ltd. XYZ Pvt. Ltd. Balance Sheet For the Period Ended August 31
Cash 2,25,000
Accounts Payable 601,866
Receivables 1,575,000
Notes payable 326,634
Inventories 1, 125,000
Other current liabilities 525,000
Total current assets 2,950,000
Total current liabilities 1,435,500
Net fixed assets 1,350,000
Long term debt 1,068,750
Common equity 1,725,750
Total Assets 4,275,000
Total Liabilities and equity 4,275,000
For the Period Ended August 31 Sales 7,500,000
Cost of goods sold 6,375,000
Selling and General expenses 188,639
Earning before Tax 188,369
Tax payable 75,438
Net Income 113,022
Problem 1: What is Dupont analysis and construct the extended Dupont equation for X limited to determine its ROE.
Problem 2: Construct the extended Dupont equation for XYZ Pvt. Ltd.
Problem 3: Determine the company's ROE.
Problem 4: Explain the financial performance of these two companies based on the analysis above and conclude with which company would you rather invest in or work for and why.