acct

ACCT203 SPECIAL ASSIGNMENT ANSWER SHEET FALL 2018

YOU MUST SUBMIT THIS FIVE –PAGE ANSWER SHEET AND ONLY THIS ANSWER SHEET

Insert your name and the date here before you save this file as:

ACCT203 FALL 18 ANSWER SHEET DUPONT MODEL LAST NAME.docx, where LAST NAME = YOUR LAST NAME

NAME ___________________________________________________________ DATE _________________

BEFORE UPLOADING YOUR ANSWERS, SAVE A COPY OF THIS WORD DOCUMENT AS A WORD DOCUMENT WITH THIS FILE NAME:

ACCT203 FALL 18 ANSWER SHEET DUPONT MODEL LAST NAME.docx where LAST NAME = YOUR LAST NAME

For example, for Ms. Sloane Stephens*, her file name would be:

ACCT203 FALL 18 ANSWER SHEET DUPONT MODEL STEPHENS.docx

.This answer sheet contains my Data Block and Calculations:

FROM STEP THREE: Here’s the BEST link to the DuPont Model information I found on my own:

Copy the link here: _______________________

FROM STEP FOUR: Choose and define a popular publicly-owned company competing in an industry that appeals to you.

THIS COMPANY IS THE COMPANY I CHOSE _______________________________ IN THIS INDUSTRY _____________________:

FROM STEP FIVE: Explore the web to find financial data from at least one consistent source about your chosen company. https://www.sec.gov/edgar/searchedgar/companysearch.html

WEB-REFERENCE I USED FOR FINANCIAL DATA ________________________________________________

Here’s my completed DuPont Model Grid – Insert the numbers form the Excel Spreadsheet here:

COLUMN =>	1	2	3	4	Col 5 = (1/2)	Col 6 = (2/3)	Col 7 = (3/4)	Col 8 = 5*6*7 same as: = (1/4)
YEAR (insert “Year” (i.e., 2005) in each row	NET PROFIT	SALES	ASSETS	EQUITY	PROFIT MARGIN RATIO	ASSET TURNOVER RATIO	LEVERAGE RATIO	RETURN ON EQUITY (ROE)
YEAR 1 ________________
YEAR 2 ________________
YEAR 3 ________________
PERCENTAGE CHANGE IN YEAR 2 = (YR 2- YR 1) / YR 1
PERCENTAGE CHANGE IN YEAR 3 = (YR 3- YR 2) / YR 2

Here are my Answers to the Questions:

Section 1: Basic Questions:

1. Share your reflections on the DATA BLOCK information - before you did the calculations:

a. Did the numbers seem attractive or worrisome?

b. Given that Investment Rate of Return Expectations should be in the 10% range, did you think this company was doing well or not?

2. What trends from these three years impress you?

a. What’s good?

b. What’s bad?

3. Explore the ROE…

a. Is it consistent?

i. If not, why not?

ii. If so, is it attractive?

b. How does the ROE compare to that of other companies in the same industry?

Section 2: Exploring the managerial performances…

1. Discuss the Profit Margin performance – Operational Management.

2. Discuss the Sales to Asset Ratio – Asset Management.

3. Discuss the Leverage Ratio (Assets to Equity Ratio) – Financing Management

Section 3: Beyond the Numbers

1. What business related factors seem to impact the changes in each ratio from year to year?

2. Characterize the relative percent changes in each ratio from year to year…

a. Did all the ratios change in a similar manner?

i. If not, why not?

ii. If the changes are consistent, how could that be when these are three ratios are not inter-related?

3. Now that you’ve seen the data and the changes, what managerial issues require further exploration?

a. Are Profit Margins in trouble?

b. Do they have unproductive assets that are not supporting sales in a changing economy?

c. Are Sales growing or are they falling?

d. Do they have too much debt?

e. Do they not have enough debt?

f. Do they need more equity?

g. Can they attract more equity?