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Calculate the Du Pont identity for the Prufrock Corporation using the tables referred to in question 2 of this discussion assignment and provide a concise

Calculate the Du Pont identity for the Prufrock Corporation using the tables referred to in question 2 of this discussion assignment and provide a concise interpretation.

PRUFROCK CORPORATION Balance Sheet 2016

Assets 2016
Current Assets
Cash $98
Accounts Receivable 188
Inventory 422
Total $708
Fixed Assets
Net Plant and Equipment $2,880
Total Assets $3,588
Liabilities and Owners Equity
Current Liabilities
Accounts Payable $344
Notes Payable 196
Total $540
Long-Term Debt $457
Owners' Equity
Common Stock and Paid in Surplus $550
Retained Earnings 2,041
Totals $2,591
Total Liabilities and Owners Equity $3,588

Prufrock Corporation 2016 Income Statement

Sales $2,311
COGS 1,344
Depreciation 276
Earnings Before Interest and Taxes $691
Interest Paid 141
Taxable Income $550
Taxes (34%) 187
Net Income $363
Dividends $121
Addition to Retained earnings 242

Ive already figured out the calculations. They are as followed...

Profit Margin: 15.7% Total Turnover Asset: .64 Equity Multiplier: 1.39

ROE=.157 x.64 x 1.39= .139667= 14%

What I need help with is interpreting the information. What is affecting the ROE? Is it the operating efficiency, asset use efficiency or Financial leverage? Can someone please explain?

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