1) Determine the following ratios for 2018: a. Profit margin on sales

b. Asset turnover

c. Return on assets

d. Equity multiplier e. Return on equity

2) Write an Equation that relates these components in calculating ROE (Du Pont). Use the Peabody Toys data to show the equation is correct.

The following condensed information was reported by Peabody Toys, Inc., for 2018 and 2017: ($ in thousands) 2018 2017 $5,200 $4,200 180 124 Income statement information Net sales Net income Balance sheet Information Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Paid-in capital Retained earnings Liabilities and shareholders' equity $ 800 $ 750 1,100 950 $1,900 $1700 $ 600 $ 450 750 400 400 750 150 100 $1,900 $ 1.700