1. Calculate the Return on Equity (ROE) for 2019 using the DuPont methodology (you must show your work). Use the components of the DuPont equation to identify the firms strengths and weaknesses in creating profits for its shareholders, compared to the industry average.

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 7,282 632,160 1, 287, 360 1, 926, 802 1, 202, 950 263, 160 939, 790 2, 866, 592 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 230, 780 558,000 330, 000 1, 118, 780 1, 205,000 721, 176 231, 176 952, 352 3, 276, 132 524, 160 489, 600 636, 808 1, 650, 568 723, 432 460,000 32, 592 492, 592 2, 866, 592 145, 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 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, 528,000 506, 000 519, 988 (13, 988) 116, 960 (130, 948) 136, 012 (266, 960) (106, 784) (160, 176) 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 Inforzation $ Earnings Per Share Shares outstanding Book Value per share Tax Rate Stock Price Equity Multiplier Industry Average 2019 1.40 130,000 7.33 35. 0% 8. 50 2. 00x 2018 (1.60) $ 100,000 4. 93 40.0% 2. 25 2017 0.88 100,000 6.64 40.0% 8. 50 $ 2019 Current Quick Days sales outstanding Inventory turnover Fixed assets turnover Total assets turnover Debt to assets ratio TIE Profit margin Operating margin ROA ROE Price/earnings Market/book 2018 1. 2x 0. 4x 38. 2 days 4. 7x 6. 4x 2. 1x 82. 80% -1. Ox -2.7% -2.2% -5.6% -32.5% -1. 4x 0.5x 2017 2. 3x 0. 8x 37. 4 days 4. 8x 10. Ox 2. 3x 54. 81% 4. 3x 2. 6% 5. 5% 6. 0% 13. 3% 9. 6x 1. 3x Ind Avg 2. 7x 1. Ox 32 days 6. 1x 7. Ox 2. 6x 40.0% 6. 2x 3. 5% 7.3% 9.1% 18. 2% 14. 2x 2. 4x Dupont formula -32. 5% 13. 3% 18. 2%