1.Calculate Cash paid for Property, Plant and Equipment purchased in 2019

2. Calculate 2019 days of payables outstanding

3. Perform a 3 way DuPont analysis for 2019

Balance sheet as of December 31, 2018 December 31, 2019 $65 $60 115 Cash Accounts receivable Inventory Note receivable Net PP&E 135 100 60 50 250 45 655 Total assets $535 $1000 ==== $50 $35 5 15 20 25 45 15 Trade accounts payable Warranty obligations Unearned revenue Other operating payables Interest payable Dividends payable Note payable Paid-in-capital Retained income 5 10 410 400 445 10 45 Total liabilities and equity $535 $1000 ===== ===== Income statement for 2018 2019 ---- $25 $50 Service revenue Retail revenue 125 250 ---- $150 Total revenue Returns $300 (5) Net revenue Cost of retail sales Salaries Depreciation Warranty expense Other operating expenses $150 (50) (25) (40) (10) (15) $295 (85) (50) (40) (20) (25) $10 Operating income Interest revenue Interest expense Loss on sale of PP&E $75 5 (20) (5) Net income $10 $55 ==== ==== The carrying amount of the PP&E item sold in 2019 is $45 at the date of the sale. Any needed warranty work is sent to an outside contractor, who is paid cash, to be comnleted