1. Calculate the 2019 total assets turnover.
2. Calculate the 2019 profit margin and the return on equity (ROE).
3. Use the DuPont equation to provide a summary and overview of the companys financial condition as projected for 2019.
4. How would the company management use the DuPont equation to improve the company performance?

EXHIBITS: INPUT DATA (for D'Leon) Table IC4.1 Balance Sheets 2019 2018 2017 Assets Cash Accounts receivable Inventories Total current assets Gross fixed assets Less: accumulated depreciation Net fixed assets Total assets $ 85,632 $ 7,282 $ 57,600 878,000 632,160 351,200 1,716,480 1,287,360 715,200 $2,680,112 $1,926,802 $ 1,124,000 1,197,160 1,202,950 491,000 380,120 263,160 146,200 $ 817,040 $ 939,790 $ 344,800 $3,497,152 $2,866,592 $ 1,468,800 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Common stock (100,000 shares) Retained earnings Total common equity Total liabilities and equity $ 436,800 $ 524,160 $ 145,600 408,000 489,600 136,000 300,000 636,808 200,000 $1,144,800 $1,650,568 $ 481,600 400,000 723,432 323,432 1,721,176 460,000 460,000 231,176 32,592 203,768 $1,952,352 $ 492,592 $ 663,768 $3,497,152 $2,866,592 $ 1,468,800 Table IC4.2 Income Statements 2019 2018 2017 Table IC4.2 Income Statements 2019 2018 2017 Sales Cost of goods sold Other expenses Total operating exp. excl. depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Taxes (40%) Net Income $7,035,600 $6,034,000 $ 3,432,000 5,875,992 5,528,000 2,864,000 550,000 519,988 358,672 $6,425,992 $6,047,988 $ 3,222,672 $ 609,608 $ (13,988) $ 209,328 116,960 116,960 18,900 $ 492,648 $ (130,948) $ 190,428 70,008 136,012 43,828 $ 422,640 $ (266,960) $ 146,600 169,056 (106,784) 58,640 $ 253,584 $ (160,176) $ 87,960 $ $ $ $ Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Stock price Shares outstanding Tax rate Lease payments Sinking fund payments 1.014 $ 0.220 $ 7.809 $ 12.17 $ 250,000 40.00% 40,000 $ 0 (1.602) $ 0.110 $ 4.926 $ 2.25 $ 100,000 40.00% 40,000 $ 0 0.880 0.220 6.638 8.50 100,000 40.00% 40,000 0 $ TABLE IC4.3 Ratio Analysis Industry Average 2019E 2018 2017 TABLE IC4.3 Ratio Analysis 2019E Current Quick Inventory turnover Days sales outstanding (DSO) Fixed assets turnover Total assets turnover Debt-to-capital ratio Times interest earned (TIE) Operating margin Profit margin Basic earning power (BEP) Return on assets (ROA) Return on equity (ROE) Return on invested capital (ROIC) Pricelearnings (P/E) Market/book (M/B) Book value per share (BVPS) 2018 1.2 0.4 4.7 38.2 6.4 2.1 73.4% -1.0 -2.2% -2.7% -4.6% -5.6% -32.5% -4.2% -1.4 0.5 $4.93 2017 2.3 0.8 4.8 37.4 10.0 2.3 44.1% 4.3 5.5% 2.6% 13.0% 6.0% 13.3% 9.6% 9.7 1.3 $6.64 Industry Average 2.7 1.0 6.1 32.0 7.0 2.6 40.0% 6.2 7.3% 3.5% 19.1% 9.1% 18.2% 14.5% 14.2 2.4 n.a