The dupont identity can be used to managers answer which of the following questions related to a company's operations?
i. how many sales dollars are being generated per each dollar of assets?
ii. how many dollars of assets have been acquired per each dollar in shareholders' equity?
iii. how much net profit is being generating per dollar of sales?
iv. does the company have the ability to meet its debt obligations in a timely manner?

The correct answer is II. How many dollars of assets have been acquired per each dollar in shareholders' equity?

Explanation:

The DuPont identity shows a firm's Return On Equity (ROE) as a function of three ratios that work as variables: a) the profit margin, b) the total asset turnover and c) the equity multiplier.

The second ratio (total asset turnover) measures the asset use efficiency and can be thought of as the result of total assets divided by shareholder equity.

a photo collage of women at work during world war 2