DUPONT ANALYSIS Use Apparel’s financial statements in Exercise 12-65 to respond to the following requirements.

Statement Item January 1, 2008

(In Thousands)

Total assets $3,485,233 Total stockholders’ equity 2,083,122 Year Ended December 31, Industry Averages 2009 2008 Return on equity 5.31% 12.54%

Profit margin 4.00% 6.21%

Asset turnover 0.83 1.96 Leverage 1.60 1.03 Required:

. Perform Dupont analysis for 2008 and 2009.

. Explain what you learn about Apparel’s trends from 2008 to 2009 by comparing its performance to the industry averages.

Exercise