For the Week for this week Assignment, you will submit answers to the following questions in your textbook:

Chapter 3

· Question 3-2

· Question 3-7

· Question 3-10

Chapter 4

· Question 4-6

· Question 4-8


3-2 Who are some of the basic users of financial statements, and how do they use them?

3-7 What is free cash flow? If you were an investor, why might you be more interested in free cash flow than net income?

3-10 Explain the following statement: Our tax rates are progressive.

Question for chapters 4

4-6 DuPONT AND ROE A firm has a profit margin of 3% and an equity multiplier of 1.9. Its sales are $150 million, and it has total assets of $60 million. What is its ROE?

4-8 DuPONT AND NET INCOME Precious Metal Mining has $17 million in sales, its ROE is 17%, and its total assets turnover is 3.2 . Common equity on the firm’s balance sheet is 50% of its total assets. What is its net income?