1. Calculate the 2019 Gross Margin, Net Profit Margin, and Return on Assets (ROA). What do these ratios indicate about Larks profitability compared to other companies in the industry?
2. Calculate the Return on Equity (ROE) for 2019 using the DuPont methodology (you must show your work). Use the individual components of the DuPont equation to explain why Larks ROE differed from the industry average.
3. Calculate the 2019 Price/Earnings and Market/Book ratios. Do these ratios indicate that investors have high or low expectations for the company?

Balance Sheet Assets Cash Accts Receivable Inventories Total Current Assets Gross fixed assets Less accumulated depreciation Net fixed assets Total Assets 2019 95, 632 987,000 1, 466, 480 2,549, 112 1, 197, 160 370, 140 827, 020 3, 376, 132 2018 67, 282 632, 960 1, 287, 360 1,987, 602 902, 950 263, 160 639, 790 2, 627, 392 2017 57,600 351, 200 715, 200 1, 124, 000 491, 000 146, 200 344, 800 1, 468, 800 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained Earnings Total equity Total liabilities and equity 234, 780 546, 444 301, 112 1,082, 336 1, 205,000 721, 176 367, 620 1,088, 796 3, 376, 132 424, 160 289, 616 636, 808 1, 350, 584 623, 432 460,000 193, 376 653, 376 2, 627, 392 145, 600 136,000 200,000 481, 600 323, 432 460, 000 203, 768 663, 768 1, 468, 800 Incore Statenent Sales Cost of goods sold Gross Margin Other operating expenses EBITDA Dep & amort EBIT Int Exp EBT Taxes Net income 2019 6, 312, 040 5,028, 393 1, 283, 647 705, 000 578, 647 145, 264 433, 383 153, 007 280, 376 98, 132 182, 244 2018 6, 034, 000 5, 288,000 746, 000 519, 988 226, 012 53, 986 172, 026 136, 012 36, 014 14, 406 21, 608 2017 3, 432, 000 2, 864,000 568,000 358, 672 209, 328 18, 900 190, 428 43, 828 146, 600 58, 640 87, 960 Additional Inforation 2019 $ 130,000 Earnings Per Share Shares outstanding Book Value per share Tax Rate Stock Price Equity Multiplier Industry Average 2018 0.22 100,000 6.53 40.0% 2. 25 2017 0.88 100,000 6.64 40.0% 8.50 $ 35. 0% 8.50 2.00x $ 2019 Current Quick Days sales outstanding Inventory turnover Fixed assets turnover Total assets turnover Debt to assets ratio TIE Gross margin Net Profit margin ROA ROE Price/earnings Market/book 2018 1. 5x 0.5x 38. 2 days 4. 7x 9. 4x 2. 3x 75. 13% 1. 3x 12. 4% 0.4% 0.8% 3. 3% 10. 2x 0.5x 2017 2. 3x 0.8x 37. 4 days 4. 8x 10. Ox 2. 3x 54. 81% 4. 3x 16.6% 2. 6% 6. 0% 13. 3% 9. 6x 1. 3x Ind Avg 2. 7x 0.9x 48 days 6.1 x 7. Ox 2. 6x 40.0% 6. 2x 18. 3% 3. 5% 9.1% 18.2% 14. 2x 2. 4x Dupont formula 3. 31% 13.3% 18.2%