BOD CORPORATION Balance Sheets as of December 31, 2014 and 2015 (5 in millions) 2014 2015 2015 $ Assets Current Assets Cash Accounts Receivable Inventory Total $ 2014 Liabilities and Owners' Equity Current Liabilities Accounts Payable $ 310 Notes Payable 200 Total $ 510 $ 190 700 480 $ 1.370 280 800 350 225 575 550 $ 1610 S Fixed Assets Net Fred Assets $ 1,670 $2.130 $ 450 $ 500 Long Term Debt Owners' Equity Common stock plus paid-in surplus Retained Eamings Total 700 1,380 $ 2080 800 1.865 $ 2665 Total Assets $ 3.040 $ 3.740 Total liabilities and owners' equity $ 3,040 $ 3,740 BOD CORPORATION 2015 Income Statement (5 in Millions) Net Sales Cost of Goods Sold Depreciation EBIT Interest Paid Taxable income Taxes Net Income $ 2.560 1.251 98 3 1,211 56 $ 1,155 347 5 508 Dividends Addition to Retained Eamings 323 485 2) The Pear Co. had sales of $105,500, a profit margin of 4 percent, and dividends of $2,000. What is the plowback/retention ratio? 3) A firm has a total debt ratio of 0.55, total debt of $330,000 and net income of $40,500. What is the company's return on equity (ROE)? 4) Blues Inc., has sales of $10,120, total assets of 53,780, and a debt-equity ratio of 0.30. If its return on equity is 15%, what is its net income? (Hint - Use the Du Pont Identity)