Balance Sheet

Assets	2019		2020
Cash	$14,000		$9,282
Short-term investments.	48,600		18,000
Accounts receivable	351,200		632,160
Inventories	710,200		1,287,360
Total current assets	$1,124,000		$1,946,802
Gross fixed assets	491,000		1,202,950
Less: accumulated depreciation	146,200		263,160
Net fixed assets	$344,800		$939,790
Total assets	$1,468,800		$2,886,592
Liabilities and equity	2019		2020
Accounts payable	$145,600		$324,000
Notes payable	200,000		720,000
Accruals	136,000		284,960
Total current liabilities	$481,600		$1,328,960
Long-term debt	323,432		1,000,000
Common stock (100,000 shares)	460,000		460,000
Retained earnings	203,768		97,632
Total equity	$663,768		$557,632
Total liabilities and equity	$1,468,800		$2,886,592

		Income Statement
	2019		2020
Sales	$5,432,000		$6,834,400
Cost of goods sold	2,864,000		4,200,000
Other expenses	340,000		720,000
Depreciation	18,900		116,960
Total operating costs	$3,222,900		$5,036,960
EBIT	$2,209,100		$1,797,440
Interest expense	62,500		176,000
Pretax earnings	$2,146,600		$1,621,440
Taxes (40%)	858,640		648,576
Net income	$1,287,960		$972,864

7. Use the DuPont equation to decompose return on equity for 2020.