dupont analysis questions and answers




Try these dupont analysis questions and answers as they are a key part of the on line finance course for non finance professionals.




Dupont analysis questions and answers

Question 1
The DuPont framework has three parts:

1. ______________
2. ______________
3. ______________


Question 2
Leverage gives an indication of how much money the company has _________ to purchase fixed assets such as land, buildings and plant and machinery.

Question 3
The leverage tells us what percentage of the assets where acquired with borrowed money. The assets purchased are then used to generate ________, but we want to know how efficient the assets are being used to generate sales.

dupont analysis questions and answers
Dupont analysis questions and answers

Question 4
The __________ component of the DuPont framework looks at the relationship between the amount of sales to the value of assets.
The more sales generated per dollar of asset the _______.





Question 5
Profitability is the relationship between income and _____.

This on-line course entitled finance for dummies consists of the following lessons:

  1. Finance for dummies
  2. Finance definition
  3. Finance entrepreneurship
  4. What is Accounting
  5. Financial statements
  6. Balance Sheets
  7. Income statements
  8. Statement of Cash Flows
  9. Financial Ratio Analysis
  10. Return on equity
  11. DuPont framework
  12. Dupont analysis case study
  13. Comparison financial statements
  14. operating cycle
  15. cash management
  16. receivables and inventory
  17. how to price a product
  18. calculate break even point
  19. preparing a budget
  20. budgeting steps
  21. understanding income tax
  22. tax brackets
  23. Next move practice finance exam questions
    1. Finance exam questions on ratios
    2. Finance questions
    3. Mock finance exam
    4. Practice finance tests
    5. Finance exam questions and answers
    6. Finance Exam 1
    7. Return on Equity Quizlet
    8. Dupont analysis questions and answers

return on equity quizlet




Try this return on equity quizlet, ROE is an important part of the finance for non finance professionals.




return on equity quizlet

Question 1
If you want to know how well an organisation is doing then ______ __ _____ (ROE) is the main measure.


Question 2
Return on equity can be broken down into three components using the DuPont Framework:
1. ____________
2. ____________
3. ____________

Now consider the following two companies UNC Ltd and BEN Ltd:

UNC Ltd BEN Ltd
Income £700 £8,000
Shareholders Equity £7500 £39,500
ROE

 

Question 3
What is the ROE for UNC Ltd?





Question 4
What is the ROE for BEN Ltd?

return on equity quizlet
Return on Equity Quizlet

Question 5
Shareholders run the risk of losing ___ their investment so typically you would want a return on equity of 10.00% and above.

Now lets look at some real companies:

2014 Apple Microsoft Wal-mart GAP
ROE 35.4% 24.6% 19.0% 42.3%

Question 6
Which company has the highest ROE and why do think it has the highest ROE


Question 7
______ __ ______ is a good general measure of an organisations performance at a given period in time and it is the basis of the DuPont framework.

This on-line course entitled finance for dummies consists of the following lessons:

  1. Finance for dummies
  2. Finance definition
  3. Finance entrepreneurship
  4. What is Accounting
  5. Financial statements
  6. Balance Sheets
  7. Income statements
  8. Statement of Cash Flows
  9. Financial Ratio Analysis
  10. Return on equity
  11. DuPont framework
  12. Dupont analysis case study
  13. Comparison financial statements
  14. operating cycle
  15. cash management
  16. receivables and inventory
  17. how to price a product
  18. calculate break even point
  19. preparing a budget
  20. budgeting steps
  21. understanding income tax
  22. tax brackets
  23. Next move practice finance exam questions
    1. Finance exam questions on ratios
    2. Finance questions
    3. Mock finance exam
    4. Practice finance tests
    5. Finance exam questions and answers
    6. Finance Exam 1
    7. Return on Equity Quizlet
    8. Dupont analysis questions and answers

Finance exam questions on ratios




Attempt these Finance exam questions on ratios with answers as this is an important part of the finance for non financial professionals.




Finance exam questions on ratios

Finance question 1
Financial reports published by companies and organisations can be used by those of us who are not employed by that company in trying to evaluate the financial ________ of that company.


Finance question 2
It would great if we could just walk into the company and poke our noses into all that sensitive information, but unfortunately we cant, so we have to rely on the reports published by the companies. Things like profit margins, costing products, Rand D is just too price sensitive – this is called _________ information and companies do not want that disclosed to their competitors.

Below are two companies which most of us will be familiar with – Ford Motor Company and General Motors.

Below is some information from their respective financial reports.

 

$ in billions  Ford  GM
  2014 2015 2016 2014
Net income 3.2 7.2 5.6 4
Total revenue 144.1 146.9 133.6 155.9
Total assets 208.5 292.2 189.4 177.7
Total equity 24.8 26.1  16  36
Profitability  2.2%  4.9%  4.2%  2.6%
Efficiency  0.69%  0.73%  0.71%  0.88%
Leverage  8.4  7.7  11.8  4.9
ROE  12.9%  27.6%  35.0%  11.1%

 

Finance question 3
Profitability is a comparison of net income to sales(Net Income ÷ Sales) which for Ford in 2014 was _____%. This means that for every one dollar made in sales they made a net profit of $____.





Finance question 4
In 2014 its profitability was ____% – we need to ask why the fall and why is GM’s profitability at ______% greater than Fords.

This on-line course entitled finance for dummies consists of the following lessons:

  1. Finance for dummies
  2. Finance definition
  3. Finance entrepreneurship
  4. What is Accounting
  5. Financial statements
  6. Balance Sheets
  7. Income statements
  8. Statement of Cash Flows
  9. Financial Ratio Analysis
  10. Return on equity
  11. DuPont framework
  12. Dupont analysis case study
  13. Comparison financial statements
  14. operating cycle
  15. cash management
  16. receivables and inventory
  17. how to price a product
  18. calculate break even point
  19. preparing a budget
  20. budgeting steps
  21. understanding income tax
  22. tax brackets
  23. Next move practice finance exam questions
    1. Finance exam questions on ratios
    2. Finance questions
    3. Mock finance exam
    4. Practice finance tests
    5. Finance exam questions and answers
    6. Finance Exam 1
    7. Return on Equity Quizlet
    8. Dupont analysis questions and answers

Finance questions




Try these finance questions with answers as they are an important part of the finance course for non finance professionals.




Please attempt all finance questions, answers are at the end of each question.

Question 1
The Statement of ____ Flows is the third primary financial statement, the Income Statement and the Balance Sheet are the other two.


Question 2
To make the cash flow statement more useful it separates cash flows into three categories:

1. ________ ____________
2. ________ ____________
3. ________ ____________


Question 3
By operating activities we mean what the company does every day in the normal running of the business. The company buys inventory and sells it – cash flows in and flows out. Paying wages, paying utility bills and advertising are all ___________ activities.

Question 4
Investing activities includes buying fixed assets such as plant and machinery, land and buildings. These are investments that will increase the productive capacity of the business. ________ activities do not happen everyday unlike operating activities. We don’t open a new factory everyday.

Question 5
__________ activities involves how much money the company has borrowed or repaid, has it paid any dividends to shareholders and has it issued any shares to raise capital for new projects.

In the table below are the cash flows of three major companies:

  1. Exxon Mobile
  2. Wal-Mart
  3. Coca-Cola
CASH FLOW
In  Billions Operating Investing Financing
Exxon Mobile 45.1 -27.0 -17.9
Wal-mart 23.3 -12.3 -11.0
Coca-Cola 10.6 -7.5 -3.6

Question 6
How much is Exxon’s spending on investing activities?


Question 7
Look at Coca- cola’s and Walmart’s cash flow.You can see both companies generate huge amounts of cash, they are called ____ ____ because they keep producing cash like a cow keeps on producing milk.

Finance Question 8
The Statement of Cash Flows, Income Statement and Balance sheet may not tell you everything about a company, they wont tell you if industrial relations are bad and that a strike is pending – but they are a pretty good starting point if you wish to ______ a company.



This on-line course entitled finance for dummies consists of the following lessons:

  1. Finance for dummies
  2. Finance definition
  3. Finance entrepreneurship
  4. What is Accounting
  5. Financial statements
  6. Balance Sheets
  7. Income statements
  8. Statement of Cash Flows
  9. Financial Ratio Analysis
  10. Return on equity
  11. DuPont framework
  12. Dupont analysis case study
  13. Comparison financial statements
  14. operating cycle
  15. cash management
  16. receivables and inventory
  17. how to price a product
  18. calculate break even point
  19. preparing a budget
  20. budgeting steps
  21. understanding income tax
  22. tax brackets
  23. Next move practice finance exam questions
    1. Finance exam questions on ratios
    2. Finance questions
    3. Mock finance exam
    4. Practice finance tests
    5. Finance exam questions and answers
    6. Finance Exam 1
    7. Return on Equity Quizlet
    8. Dupont analysis questions and answers

mock finance exam




This mock finance exam with answers is an important part of this finance for dummies course




Please attempt all questions in this mock finance exam – answers at the bottom of each question.

Question 1
The ________ Statement is the second of the three primary financial statements; the balance sheet and cash flow statement are the other two.


Question 2
Apple Inc. for example earns its revenue by selling smart phones and ipads. Microsoft earns its revenues by selling __________.

Question 3
________ are the overheads in running the company for example wages to employess, buying inventory, energy bills and advertising.

Mock finance exam
Mock finance exam

Question 4
If Revenues are greater than expenses the company has made an income in the form of ________. If expenses exceed revenues then the company will make a _______.


Question 5

Below, I have extracted some information from four technology companies their published financial reports and summarised it below – what information can we extract from this data? Please answer the questions below:

Income Statements (2014)
In Billions Revenues Expenses Net Income
Facebook 12.5 9.6 2.9
Google 66.0 41.6 14.4
Microsoft 86.8 64.7 22.1
Apple 182.8 143.3 39.5

Question 6
In terms of revenue which is the smallest company?


Question 7
In terms of revenue which is the largest company?

Question 8
The main point of the income statement is that a company can increase its net assets through making income/profit. Each of these tech giants have been profitable and have increased year after year their ___ ______.

Question 9

This on-line course entitled finance for dummies consists of the following lessons:

  1. Finance for dummies
  2. Finance definition
  3. Finance entrepreneurship
  4. What is Accounting
  5. Financial statements
  6. Balance Sheets
  7. Income statements
  8. Statement of Cash Flows
  9. Financial Ratio Analysis
  10. Return on equity
  11. DuPont framework
  12. Dupont analysis case study
  13. Comparison financial statements
  14. operating cycle
  15. cash management
  16. receivables and inventory
  17. how to price a product
  18. calculate break even point
  19. preparing a budget
  20. budgeting steps
  21. understanding income tax
  22. tax brackets
  23. Next move practice finance exam questions
    1. Finance exam questions on ratios
    2. Finance questions
    3. Mock finance exam
    4. Practice finance tests
    5. Finance exam questions and answers
    6. Finance Exam 1
    7. Return on Equity Quizlet
    8. Dupont analysis questions and answers

Practice finance tests




Try these Practice finance tests as part of the on line course finance for dummies.

Practice finance tests answer all questions and the answer appears below each question.

Question 1
Financial information presented to the public must be relevant, accurate and __________.





Question 2
Financial statements are the documents presents to the public and there are three major financial statements:

1._________________
2._________________
3._________________


Question 3
If you are assessing a supplier’s financial ___________, or a competitor’s long term __________,or if you are negotiating a pay rise for your Union members, you will use these three financial statements as part of your assessment.

Question 4
The first and probably the most important statement of all is the balance sheet.The balance sheet is a list of all _______ and ___________ at a particular moment in time.

Below is an extract  from Apple’s balance sheet.

 

APPLE Inc.         Balance Sheet as at  September 2014in millions $
Current Assets
cash and cash equivalents 13844
short term marketable securities 11233
accounts receivable 17460
inventories 2111
deferred tax assets 4318
vendor non-trade receivables 9759
other current assets 9806
Total current assets 68531
Long term marketable securities 130162
property plant and equipment 20624
Goodwill 4616
Acquiring intangible assets net 4142
other assets 3764
Total Assets 231839

Question 5
How much cash has Apple got at September 2014?

Practice finance tests
Practice finance tests

Question 6
But what is Apple’s biggest asset?


Question 7
How much is apple owed by its customers?




Question 8
How much was Apples inventory (all those iphones and i watches)?

Question 9
How much was Apple’s total assets at the end of September 2014.

Question 10
Total Assets = Liabilities + Owner’s Equity
The above equation is called the ____________ ____________ and it underpins the balance sheet.

This on-line course entitled finance for dummies consists of the following lessons:

  1. Finance for dummies
  2. Finance definition
  3. Finance entrepreneurship
  4. What is Accounting
  5. Financial statements
  6. Balance Sheets
  7. Income statements
  8. Statement of Cash Flows
  9. Financial Ratio Analysis
  10. Return on equity
  11. DuPont framework
  12. Dupont analysis case study
  13. Comparison financial statements
  14. operating cycle
  15. cash management
  16. receivables and inventory
  17. how to price a product
  18. calculate break even point
  19. preparing a budget
  20. budgeting steps
  21. understanding income tax
  22. tax brackets
  23. Next move practice finance exam questions
    1. Finance exam questions on ratios
    2. Finance questions
    3. Mock finance exam
    4. Practice finance tests
    5. Finance exam questions and answers
    6. Finance Exam 1
    7. Return on Equity Quizlet
    8. Dupont analysis questions and answers

Finance exam questions and answers




Please attempt these finance exam questions and answers, they are an important part of the online course finance for dummies

Please attempt all questions in this practice  Finance exam questions and answers session.

Question 1
Financial accounting, takes the job of the bookkeeper one stage further and presents the data collected into meaningful accounting ___________.





Question 2
These statements are presented to people outside of the company, showing whether the business has made a profit or a _________. Potential investors or creditors rely on these reports so they must be _________ and reliable.

Finance exam questions and answers
Finance exam questions and answers.

Question 3
Management accounting reports are used within the company, they are used by managers to make ________ regarding pricing, sales volume and production methods


Question 4
Management accounting reports are seen/not seen by outsiders as they are too sensitive.

Question 5
Accounting is the collection and recording of monetary data and compiled into meaningful reports to help people make better __________ regarding that business.

Question 6
The owners and managers of a company can analyse and present its internal data in any way it chooses. There are no rules on presenting internal accounts or _________ accounting.

Question 7
There are strict accounting rules to say how income is calculated and rules to control the way financial information is presented to those outside of the company – this is called ________ accounting.




Question 8
These financial accounting rules are important for potential investors and creditors of the company. They must be able to rely on that financial information and be able to compare the company’s performance over several years and be able to compare it with _______ companies in the same industry.

This on-line course entitled finance for dummies consists of the following lessons:

  1. Finance for dummies
  2. Finance definition
  3. Finance entrepreneurship
  4. What is Accounting
  5. Financial statements
  6. Balance Sheets
  7. Income statements
  8. Statement of Cash Flows
  9. Financial Ratio Analysis
  10. Return on equity
  11. DuPont framework
  12. Dupont analysis case study
  13. Comparison financial statements
  14. operating cycle
  15. cash management
  16. receivables and inventory
  17. how to price a product
  18. calculate break even point
  19. preparing a budget
  20. budgeting steps
  21. understanding income tax
  22. tax brackets
  23. Next move practice finance exam questions
    1. Finance exam questions on ratios
    2. Finance questions
    3. Mock finance exam
    4. Practice finance tests
    5. Finance exam questions and answers
    6. Finance Exam 1
    7. Return on Equity Quizlet
    8. Dupont analysis questions and answers

Finance Exam 1




Practice finance exam 1 is an important part of this finance for dummies online course.

Finance Exam 1- attempt all questions, the answer is at the the bottom of each question

Question 1
A finance definition could be ‘it is the process of finding out what an individual or organisation needs to buy, how it it is going to get the _________ to buy those things and how it is going to manage those objects once they have been purchased’.





Question 2
Entrepreneur is a French word in origin and it means _________________

Finance Exam
Finance Exam

Question 3
Entrepreneurs are the creative people, the ideas people who can see an opening and a potential business idea. Often the entrepreneurs have the idea but don’t have the _________ to implement their ideas.

Question 4
Investors are the guys with the money and looking to invest and make a ________ on their investment or maybe just lend it rather than invest. The investors could be individuals or __________.


Question 5
Brokers are specialised institutions who match up the _________ with the entrepreneur

Question 6
Now we all know that a bookkeeper gathers the financial data and records it into ledgers – nowadays these ledgers will be in a computerised accounting package. The bookkeeper’s job is to _______ everything __________ – if it is not recorded then no-one will know about it!


This on-line course entitled finance for dummies consists of the following lessons:

  1. Finance for dummies
  2. Finance definition
  3. Finance entrepreneurship
  4. What is Accounting
  5. Financial statements
  6. Balance Sheets
  7. Income statements
  8. Statement of Cash Flows
  9. Financial Ratio Analysis
  10. Return on equity
  11. DuPont framework
  12. Dupont analysis case study
  13. Comparison financial statements
  14. operating cycle
  15. cash management
  16. receivables and inventory
  17. how to price a product
  18. calculate break even point
  19. preparing a budget
  20. budgeting steps
  21. understanding income tax
  22. tax brackets
  23. Next move practice finance exam questions
    1. Finance exam questions on ratios
    2. Finance questions
    3. Mock finance exam
    4. Practice finance tests
    5. Finance exam questions and answers
    6. Finance Exam 1
    7. Return on Equity Quizlet
    8. Dupont analysis questions and answers