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Balance Sheet			Income Statement
Cash	$ 5,200		Sales	$192,300
Accounts Receivable	16,800		Cost of Goods Sold	113,300
Inventory	32,500		Gross Profit	$ 79,000
Total Current Assets	$ 54,500		Cash Operating Expenses	$ 45,200
Fixed Assets	$171,000		Depreciation	$ 9,000
Less: Accumulated Depreciation	39,000		EBIT	$ 24,800
Net Fixed Assets	$132,000		Interest Expense	$ 6,700
Total Assets	$186,500		Taxable Income	$ 18,100
			Taxes	$ 5,700
Accounts Payable	$ 6,100		Net Income	$ 12,400
Accrued Wages	8,700		Less: Dividend Payment	$ 6,500
Accrued Taxes	5,700		Addition to Retained Earnings	$ 5,900
Notes Payable	9,200
Total Current Liabilities	$ 29,700
Long Term Debt	$ 81,200
Total Liabilities	$ 110,900
Common Stock	$ 61,500
Retained Earnings	14,100
Total Equity	$ 75,600
Total Liabilities and Equity	$186,500

Use the financial statements above to calculate the firms DuPont ROE. Calculate ROE and each of its components for the firm and for the industry. Make a table of your results. Compare each component and ROE to the corresponding industry number.

Industry averages are as follows:

Industry average total debt to total asset ratio: 0.46

Industry average net profit margin: 7.2

percent Industry average ROE: 15.25%

Check Answers:

	NPM	TAT	EM	DuPont ROE
Firm	6.45%	1.031	2.467	16.41%
Industry	7.2%	1.144	1.852	15.25%