Triangular Chemicals has total assets of $97 ?million, a return on equity of 35 ?percent, a net profit margin of 4

Finance Mar 12, 2021

Triangular Chemicals has total assets of $97 ?million, a return on equity of 35 ?percent, a net profit margin of 4.9 ?percent, and an equity multiplier 2.98

The company's total sales are? ____ round to one decimal place

Expert Solution

DuPont Analysis States,

ROE = Profit Margin (Profit/Sales)*Total Asset Turnover (Sales/Assets) * Equity Multiplier (Assets/Equity)

35% = 4.90%*(Sales/$97)*2.98

35% = 0.14602*(Sales/$97)

Sales/$97 = 35%/0.14602

Sales/$97 = $2.40 millions

Sales = $232.50 Million

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