1. Compute the common-sized income statements for past 3 years (2022, 2021, 2020)

2. Compute the financial ratios needed to evaluate the firms financial performance using the Dupont decomposition for the past 3 years.

3. Analyze the firms performance using the Dupont methodology. The analysis will include the computations of the ratios and the common-sized income statements and a discussion of the elements that significantly impacted (positively and negatively) the firms performance (ROE).

\begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Standardized Annual Income Statement } \\ \hline Report Date & 12/31/2022 & 12/31/2021 & 12/31/2020 & 12/31/2019 & 12/31/2018 \\ \hline Currency & USD & USD & USD & USD & USD \\ \hline Audit Status & Not & Not & Not & Not & Not \\ \hline Consolidated & Yes & Yes & Yes & Yes & Yes \\ \hline Scale & Thousands & Thousands & Thousands & Thousands & Thousands \\ \hline Sales Revenue & 8748400 & 9787400 & 8139200 & 9420800 & 10012700 \\ \hline Other Revenue & 14434200 & 13435500 & 11068600 & 11655700 & 11012500 \\ \hline Total Revenue & 23182600 & 23222900 & 19207800 & 21076500 & 21025200 \\ \hline Direct costs & 7625700 & 8307700 & 7248200 & 7760600 & 8265900 \\ \hline Gross Profit & 15556900 & 14915200 & 11959600 & 13315900 & 12759300 \\ \hline Selling General \& Admin & 4841900 & 4712800 & 4452500 & 4430000 & 4173500 \\ \hline Depreciation \& Amortization & 370400 & 329700 & 300600 & - & \\ \hline Restruct Remediation \& Impair & 1009800 & -285400 & -267500 & 74300 & 231700 \\ \hline Other Operating Expense & 136800 & 75400 & 290700 & 23100 & -12900 \\ \hline Total Indirect Operating Costs & 6358900 & 4832500 & 4776300 & 4527400 & 4392300 \\ \hline Operating Income & 9198000 & 10082700 & 7183300 & 8788500 & 8367000 \\ \hline Interest Income & -1207000 & -1185800 & -1218100 & -1121900 & -981200 \\ \hline Gains on Sale of Assets & 59800 & 96600 & 23300 & 127500 & 304100 \\ \hline Other Non-Operating Income & -338600 & -42300 & 34800 & 70200 & -25300 \\ \hline Total Non-Operating Income & -1485800 & -1131500 & -1160000 & -924200 & -702400 \\ \hline Earnings Before Tax & 7712200 & 8951200 & 6023300 & 7864300 & 7664600 \\ \hline Taxation & 1648000 & 1582700 & 1410200 & 1992700 & 1891800 \\ \hline Equity Earnings & 113200 & 176700 & 117400 & 153800 & 151500 \\ \hline Extraordinary Items & 0 & 0 & 0 & 0 & 0 \\ \hline Accounting Changes & 0 & 0 & 0 & 0 & 0 \\ \hline Net Income & 6177400 & 7545200 & 4730500 & 6025400 & 5924300 \\ \hline Preference Dividends \& Similar & 0 & 0 & 0 & 0 & 0 \\ \hline Net Income to Common & 6177400 & 7545200 & 4730500 & 6025400 & 5924300 \\ \hline Average Shares Basic & 736500 & 746300 & 744600 & 758100 & 778200 \\ \hline EPS Net Basic & 8.39 & 10.11 & 6.35 & 7.95 & 7.61 \\ \hline EPS Continuing Basic & 8.39 & 10.11 & 6.35 & 7.95 & 7.61 \\ \hline Average Shares Diluted & 741300 & 751800 & 750100 & 764900 & 785600 \\ \hline EPS Net Diluted & 8.33 & 10.04 & 6.31 & 7.88 & 7.54 \\ \hline EPS Continuing Diluted & 8.33 & 10.04 & 6.31 & 7.88 & 7.54 \\ \hline Shares Outstanding & 731300 & 744800 & 745400 & 746300 & 767100 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \\ \hline Report Date & \multicolumn{5}{|c|}{ Report Date } \\ \hline \multicolumn{6}{|l|}{ Currency } \\ \hline Audit Status & Not & Not & Not & Not & Not \\ \hline \multicolumn{6}{|l|}{ Consolidated } \\ \hline Scale & Thousands & Thousands & Thousands & Thousands & Thousands \\ \hline \multicolumn{6}{|l|}{ Cash \& Equivalents } \\ \hline Cash \& Equivs \& ST Investments & 2583800 & 4709200 & 3449100 & 898500 & 866000 \\ \hline \multicolumn{6}{|l|}{\begin{tabular}{l} Receivables (ST) \\ Inventories \end{tabular}} \\ \hline \multicolumn{6}{|l|}{ Inventories } \\ \hline \multicolumn{6}{|l|}{\begin{tabular}{l} Other Current Assets \\ Total Current Assets \end{tabular}} \\ \hline Total Current Assets & 5424200 & 7148500 & 6243200 & 3557900 & 4053200 \\ \hline \multicolumn{6}{|l|}{ Gross Property Plant \& Equip } \\ \hline \multirow{2}{*}{\multicolumn{6}{|c|}{ Accumulated Depreciation }} \\ \hline & 23773600 & 24720600 & 24958200 & 24160000 & 22842700 \\ \hline \multicolumn{6}{|l|}{ Long Term Investments } \\ \hline \multicolumn{6}{|l|}{ Intangible Assets } \\ \hline \multicolumn{6}{|l|}{ Other Assets } \\ \hline \multicolumn{6}{|l|}{ Total Assets } \\ \hline \multicolumn{6}{|l|}{ Accounts Payable \& Accrued Exps } \\ \hline \multicolumn{6}{|l|}{ Accounts Payable } \\ \hline Accrued Expenses & 648500 & 600000 & 615400 & 585300 & 550700 \\ \hline Current Debt & - & - & 2243600 & 59100 & - \\ \hline \multicolumn{6}{|l|}{ Other Current Liabilities } \\ \hline \multicolumn{6}{|l|}{ Total Current Liabilities } \\ \hline \multicolumn{6}{|l|}{ LT Debt \& Leases } \\ \hline \multicolumn{6}{|l|}{ Deferred LT Liabilities } \\ \hline Minority Interests & 0 & 0 & 0 & 0 & 0 \\ \hline \multicolumn{6}{|l|}{ Other Liabilities } \\ \hline \multicolumn{6}{|l|}{ Total Liabilities } \\ \hline \multicolumn{6}{|l|}{ Common Share Capital } \\ \hline Additional Paid-In Capital & 8547100 & 8231600 & 7903600 & 7653900 & 7376000 \\ \hline Retained Earnings & 59543900 & 57534700 & 53908100 & 52930500 & 50487000 \\ \hline Accum Other Comprehensive Income & -2486600 & -2573700 & -2586800 & -2482700 & -2609500 \\ \hline Treasury Stock & 71624400 & 67810200 & 67066400 & 66328600 & 61528500 \\ \hline Other Equity & 0 & 0 & 0 & 0 & 0 \\ \hline Total Equity & -6003400 & -4601000 & -7824900 & -8210300 & -6258400 \\ \hline Total Liabilities \& Equity & 50435600 & 53854300 & 52626800 & 47510800 & 32811200 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Standardized Annual Income Statement } \\ \hline Report Date & 12/31/2022 & 12/31/2021 & 12/31/2020 & 12/31/2019 & 12/31/2018 \\ \hline Currency & USD & USD & USD & USD & USD \\ \hline Audit Status & Not & Not & Not & Not & Not \\ \hline Consolidated & Yes & Yes & Yes & Yes & Yes \\ \hline Scale & Thousands & Thousands & Thousands & Thousands & Thousands \\ \hline Sales Revenue & 8748400 & 9787400 & 8139200 & 9420800 & 10012700 \\ \hline Other Revenue & 14434200 & 13435500 & 11068600 & 11655700 & 11012500 \\ \hline Total Revenue & 23182600 & 23222900 & 19207800 & 21076500 & 21025200 \\ \hline Direct costs & 7625700 & 8307700 & 7248200 & 7760600 & 8265900 \\ \hline Gross Profit & 15556900 & 14915200 & 11959600 & 13315900 & 12759300 \\ \hline Selling General \& Admin & 4841900 & 4712800 & 4452500 & 4430000 & 4173500 \\ \hline Depreciation \& Amortization & 370400 & 329700 & 300600 & - & \\ \hline Restruct Remediation \& Impair & 1009800 & -285400 & -267500 & 74300 & 231700 \\ \hline Other Operating Expense & 136800 & 75400 & 290700 & 23100 & -12900 \\ \hline Total Indirect Operating Costs & 6358900 & 4832500 & 4776300 & 4527400 & 4392300 \\ \hline Operating Income & 9198000 & 10082700 & 7183300 & 8788500 & 8367000 \\ \hline Interest Income & -1207000 & -1185800 & -1218100 & -1121900 & -981200 \\ \hline Gains on Sale of Assets & 59800 & 96600 & 23300 & 127500 & 304100 \\ \hline Other Non-Operating Income & -338600 & -42300 & 34800 & 70200 & -25300 \\ \hline Total Non-Operating Income & -1485800 & -1131500 & -1160000 & -924200 & -702400 \\ \hline Earnings Before Tax & 7712200 & 8951200 & 6023300 & 7864300 & 7664600 \\ \hline Taxation & 1648000 & 1582700 & 1410200 & 1992700 & 1891800 \\ \hline Equity Earnings & 113200 & 176700 & 117400 & 153800 & 151500 \\ \hline Extraordinary Items & 0 & 0 & 0 & 0 & 0 \\ \hline Accounting Changes & 0 & 0 & 0 & 0 & 0 \\ \hline Net Income & 6177400 & 7545200 & 4730500 & 6025400 & 5924300 \\ \hline Preference Dividends \& Similar & 0 & 0 & 0 & 0 & 0 \\ \hline Net Income to Common & 6177400 & 7545200 & 4730500 & 6025400 & 5924300 \\ \hline Average Shares Basic & 736500 & 746300 & 744600 & 758100 & 778200 \\ \hline EPS Net Basic & 8.39 & 10.11 & 6.35 & 7.95 & 7.61 \\ \hline EPS Continuing Basic & 8.39 & 10.11 & 6.35 & 7.95 & 7.61 \\ \hline Average Shares Diluted & 741300 & 751800 & 750100 & 764900 & 785600 \\ \hline EPS Net Diluted & 8.33 & 10.04 & 6.31 & 7.88 & 7.54 \\ \hline EPS Continuing Diluted & 8.33 & 10.04 & 6.31 & 7.88 & 7.54 \\ \hline Shares Outstanding & 731300 & 744800 & 745400 & 746300 & 767100 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \\ \hline Report Date & \multicolumn{5}{|c|}{ Report Date } \\ \hline \multicolumn{6}{|l|}{ Currency } \\ \hline Audit Status & Not & Not & Not & Not & Not \\ \hline \multicolumn{6}{|l|}{ Consolidated } \\ \hline Scale & Thousands & Thousands & Thousands & Thousands & Thousands \\ \hline \multicolumn{6}{|l|}{ Cash \& Equivalents } \\ \hline Cash \& Equivs \& ST Investments & 2583800 & 4709200 & 3449100 & 898500 & 866000 \\ \hline \multicolumn{6}{|l|}{\begin{tabular}{l} Receivables (ST) \\ Inventories \end{tabular}} \\ \hline \multicolumn{6}{|l|}{ Inventories } \\ \hline \multicolumn{6}{|l|}{\begin{tabular}{l} Other Current Assets \\ Total Current Assets \end{tabular}} \\ \hline Total Current Assets & 5424200 & 7148500 & 6243200 & 3557900 & 4053200 \\ \hline \multicolumn{6}{|l|}{ Gross Property Plant \& Equip } \\ \hline \multirow{2}{*}{\multicolumn{6}{|c|}{ Accumulated Depreciation }} \\ \hline & 23773600 & 24720600 & 24958200 & 24160000 & 22842700 \\ \hline \multicolumn{6}{|l|}{ Long Term Investments } \\ \hline \multicolumn{6}{|l|}{ Intangible Assets } \\ \hline \multicolumn{6}{|l|}{ Other Assets } \\ \hline \multicolumn{6}{|l|}{ Total Assets } \\ \hline \multicolumn{6}{|l|}{ Accounts Payable \& Accrued Exps } \\ \hline \multicolumn{6}{|l|}{ Accounts Payable } \\ \hline Accrued Expenses & 648500 & 600000 & 615400 & 585300 & 550700 \\ \hline Current Debt & - & - & 2243600 & 59100 & - \\ \hline \multicolumn{6}{|l|}{ Other Current Liabilities } \\ \hline \multicolumn{6}{|l|}{ Total Current Liabilities } \\ \hline \multicolumn{6}{|l|}{ LT Debt \& Leases } \\ \hline \multicolumn{6}{|l|}{ Deferred LT Liabilities } \\ \hline Minority Interests & 0 & 0 & 0 & 0 & 0 \\ \hline \multicolumn{6}{|l|}{ Other Liabilities } \\ \hline \multicolumn{6}{|l|}{ Total Liabilities } \\ \hline \multicolumn{6}{|l|}{ Common Share Capital } \\ \hline Additional Paid-In Capital & 8547100 & 8231600 & 7903600 & 7653900 & 7376000 \\ \hline Retained Earnings & 59543900 & 57534700 & 53908100 & 52930500 & 50487000 \\ \hline Accum Other Comprehensive Income & -2486600 & -2573700 & -2586800 & -2482700 & -2609500 \\ \hline Treasury Stock & 71624400 & 67810200 & 67066400 & 66328600 & 61528500 \\ \hline Other Equity & 0 & 0 & 0 & 0 & 0 \\ \hline Total Equity & -6003400 & -4601000 & -7824900 & -8210300 & -6258400 \\ \hline Total Liabilities \& Equity & 50435600 & 53854300 & 52626800 & 47510800 & 32811200 \\ \hline \end{tabular}