1. Calculate the DuPont Identity for 2012 for the following company and show the component parts

TABLE 2.2 Income Statement U.S. CORPORATION 2012 Income Statement ($ in millions) Net sales $1,509 750 65 $ 694 Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (34%) Net income 70 $ 624 212 $ 412 Dividends $103 Addition to retained earnings 309 U.S. CORPORATION 2011 and 2012 Balance Sheets ($ in millions) Assets Liabilities and Owners' Equity 2011 2012 2011 2012 Current assets Current liabilities Cash $ 104 $ 160 Accounts payable $ 232 $ 266 Accounts receivable 455 688 Notes payable 196 123 Inventory 553 555 Total $ 428 $ 389 Total $1,112 $1,403 Fixed assets Net plant and Long-term debt $ 408 $ 454 equipment $1,644 $1,709 Owners' equity Common stock and paid-in surplus 600 640 Retained earnings 1,320 1,629 Total $1,920 $2,269 Total liabilities and Total assets $2,756 $3,112 owners' equity $2,756 $3,112