Attached are the financial statements for Smith Company, Inc. Use the financial statements to answer the questions below

Calculate and interpret the return on assets using the Dupont Method for the four years of data.

Calculate and interpret the return on equity using the Modified Dupont Method all four years of data.

Information for calculating the ROA and ROE using the Dupont Method for three competitors to Smith Company, Inc. is also provided below.

Format Table

(2018)	Competitor 1	Competitor 2	Competitor 3
Net Profit Margin	0.082	0.11	0.03
Total Asset Turnover	0.88	0.9	0.55
ROA	0.07216	0.099	0.0165
FLM	3.3	2.5	5.5
ROE	0.238128	0.2475	0.09075

NOTE: The five-factor DuPont method is as follows:

= Tax Burden * Interest Burden * Operating Margin * Asset Turnover * Equity Multiplier

	12/31/2018	12/31/2017	12/31/2016	12/31/2015
Revenue
Total Revenue	51,728,000	57,902,000	56,519,100	56,488,000
Cost of Revenue	23,502,000	25,340,000	25,399,800	25,283,000
Gross Profit	28,226,000	32,562,000	31,119,300	31,205,000
Operating Expenses
Selling General and Administrative	19,184,000	20,706,000	21,225,600	20,736,000
Operating Income or Loss	9,042,000	11,856,000	9,893,700	10,469,000
Income from Continuing Operations
Other Income/Expenses Net	-1,148,000	-1,507,000	-1,508,400	-2,256,000
Interest Expense	1,220,000	1,288,000	1,207,800	853,000
Income Before Tax	6,674,000	9,061,000	7,177,500	7,360,000
Income Tax Expense	2,696,000	4,130,000	1,956,600	1,708,000
Net Income	3,978,000	4,931,000	5,220,900	5,652,000