AllState Trucking Co. has the following ratios compared to its industry for 2007. AllState TruckingIndustryReturn on sales (i.e. Profit margin)3%8%Return on assets15%10% Please use Du Pont system of analysis to calculate and explain why the return-on-assets ratio is so much more favorable than the return-on-sales ratio compared to the industry. 12. AllState Trucking Co. has the following ratios compared to its industry for 2007.AllState TruckingIndustryReturn on sales (i.e. Profit margin)3%8%Return on assets15%10%Please use Du Pont system of analysis to calculate and explain why the return-on-assets ratio isso much more favorable than the return-on-sales ratio compared to the industry.

Return on Asset of the company is calculated as Net Income by total assets and helps in assessing…

Answered: AllState Trucking Co. has the following…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

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AllState Trucking Co. has the following ratios compared to its industry for 2007.

	AllState Trucking	Industry
Return on sales (i.e. Profit margin)	3%	8%
Return on assets	15%	10%

Please use Du Pont system of analysis to calculate and explain why the return-on-assets ratio is so much more favorable than the return-on-sales ratio compared to the industry.

12. AllState Trucking Co. has the following ratios compared to its industry for 2007.
AllState Trucking
Industry
Return on sales (i.e. Profit margin)
3%
8%
Return on assets
15%
10%
Please use Du Pont system of analysis to calculate and explain why the return-on-assets ratio is
so much more favorable than the return-on-sales ratio compared to the industry.

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