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Bethesda Mining Company reports the following balance sheet information for 2015 and 2016. BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016
Bethesda Mining Company reports the following balance sheet information for 2015 and 2016.
BETHESDA MINING COMPANY Balance Sheets as of December 31, 2015 and 2016 | |||||||||||||||||
2015 | 2016 | 2015 | 2016 | ||||||||||||||
Assets | Liabilities and Owners Equity | ||||||||||||||||
Current assets | Current liabilities | ||||||||||||||||
Cash | $ | 67,906 | $ | 85,508 | Accounts payable | $ | 186,422 | $ | 194,111 | ||||||||
Accounts receivable | 65,781 | 86,139 | Notes payable | 81,520 | 133,088 | ||||||||||||
Inventory | 115,499 | 180,234 | Total | $ | 267,942 | $ | 327,199 | ||||||||||
Total | $ | 249,186 | $ | 351,881 | Long-term debt | $ | 230,000 | $ | 166,750 | ||||||||
Owners equity | |||||||||||||||||
Common stock and paid-in surplus | $ | 225,000 | $ | 225,000 | |||||||||||||
Fixed assets | Accumulated retained earnings | 185,091 | 222,960 | ||||||||||||||
Net plant and equipment | $ | 658,847 | $ | 590,028 | Total | $ | 410,091 | $ | 447,960 | ||||||||
Total assets | $ | 908,033 | $ | 941,909 | Total liabilities and owners equity | $ | 908,033 | $ | 941,909 | ||||||||
Suppose that the Bethesda Mining Company had sales of $2,326,873 and net income of $92,381 for the year ending December 31, 2016. Calculate ROE using the DuPont identity. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profit margin and return on equity as a percent.)
Profit margin | % | |
Total asset turnover | times | |
Equity multiplier | times | |
Return on equity | % | |
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