BP4-42. Compute the DuPont Disaggregation of ROE Refer to the balance sheets and income statement below for Under Armour Inc. UNDER ARMOUR INC. Consolidated Statements of Income For 12 Months Ended ($ in 000s) Dec. 31, 2015 Net revenues Cost of goods sold. Gross profit...... Selling, general and administrative expenses Income from operations.. Interest expense, net Other expense, net.. $3,963,313 2,057,766 1,905,547 1,497,000 408,547 (14,628) (7,234) Income before income taxes Provision for income taxes 386,685 154,112 $ 232,573 Net income... UNDER ARMOUR INC. Consolidated Balance Sheet $ in 000s Dec. 31, 2014 Dec. 31, 2015 Assets Cash and cash equivalents Accounts receivable, net Inventories $ 593,175 279,835 536,714 $ 129,852 433,638 783,031 152,242 Prepaid expenses and other current assets. Deferred income taxes.... 87,177 52,498 Total current assets 1,549,399 305,564 123,256 26,230 1,498,763 538,531 585,181 75,686 92,157 Property and equipment, net Goodwill.. Intangible assets, net Deferred income taxes. 33,570 Other long-term assets 57,064 78,582 Total assets. $2,095,083 $2,868,900 Liabilities and Stockholders' Equity Accounts payable.. Accrued expenses $ 200,460 $ 210,432 192,935 147,681 28,951 34,563 Current maturities of long term-debt Other current liabilities... Total current liabilities.. Long-term debt, net of current maturities Long-term line of credit, noncurrent Other long-term liabilities.. 42,000 43,415 478,810 421,627 255,250 352,000 275,000 94,868 67,906 744,783 1,200,678 Total liabilities.. Stockholders' equity Additional paid-in capital Retained earnings Accumulated other comprehensive loss 636,630 1,076,533 (45,013) 508,350 856,687 (14,808) 1,668,222 1,350,300 Total stockholders' equity $2,868,900 Total liabilities and stockholders' equity.. $2,095,083 Required a. Compute return on equity (ROE). b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage. C. Calculate the profitability and productivity components of ROA. d. Confirm the ROA from part a. above with the full DuPont disaggregation: ROE = PM X AT X FL