Answered>Order 4370

The following data apply to Jacobus and Associates (millions of dollars):

           Cash                                     $400

           Fixed Income                       $4,300

           Sales                                     $14,600

           Net Income                           $730

           Quick Ratio                          2.0

           Current Ratio                                   3.0

           DSO                                      40 days

           ROE                                      12.5%

Jacobus has no preffered stock-only common equity, current liabilities, and long-term debt.

Substitute you calculated profit margin, total asset turnover, and equity multiplier into the DuPont equation and verify that resulting ROE is 12.5%

(4) total assets,

(5) ROA,

(6) common equity,