Exercise 12-83 (Algorithmic) Dupont Analysis Financial statements for Remington Inc. follow. Remington Inc. Consolidated Statements of Income (In thousands except per share amounts) 2019 2018 2017 Net sales $7,245,088 $6,944,296 $6,149,218 Cost of goods sold (5,286,253) (4,953,556) (4,355,675) Gross margin $1,958,835 $1,990,740 $1,793,543 General and administrative expenses (1,259,896) (1,202,042) (1,080,843) Special and nonrecurring items 2,617 Operating income $701,556 $788,698 $712,700 Interest expense (63,685) (62,398) (63,927) Other income 7,308 10,080 11,529 Gain on sale of investments 9,1171 Income before income taxes $645,179 $745,497 $660,302 Provision for income taxes (254,000) (290,000) (257,000) Net Income $391,179 $455,497 $403,302 Net Income per share $1.08 $1.25 $1.11 Remington Inc. Consolidated Balance Sheets Remington Inc. Consolidated Balance Sheets (In thousands) ASSETS Dec 31, 2019 Dec. 31, 2018 Current assets: Cash and equivalents $320,558 $41,235 Accounts recevable 1,056,911 837,377 Inventories 733,700 803,707 Other 109,456 101,811 Total current assets $2,220,625 $1,784,130 Property and equipment, net 1,666,588 1,813,948 Other assets 261,992 248,372 Total assets $4,149,205 $3,846,450 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $250,36) $309,092 Accrued expenses 347,892 274,220 Other current liabilities 15,700 Income taxes 93,489 137,466 Total current abilities $707.444 $720,778 Long-term debt $650,000 $541,639 Deferred income taxes 275,101 274,844 Other long-term liabilities 61,267 41,572 Other current liabilities 15,700 Income taxes 93,489 137,466 Total current liabilities $707,444 $720,778 Long-term debt $650,000 $541,639 Deferred Income taxes 275,101 274,844 Other long-term liabilities 61,267 41,572 Total liabilities $1,693,812 $1,578,833 Stockholders' equity Common and preferred stock $189,727 $189,727 Additional paid-in capital 143,006 127,776 Retained earnings 2,397,112 2,136,794 $2,729,845 $2,454,297 Less: Treasury stock, at cost (274,452) (186,680) Total stockholders' equity $2,455,393 $2,267,617 Total liabilities and stockholders' equity $4,149,205 $3,846,450 Use the information above and below to respond to the following requirements Statement Item January 1, 2018 (In Millions) Total assets $3,485,233 Total stockholders' equity 2,083,122 Year ended December 31, Industry Averages 2019 2018 Return on equity 5.31% 12.54% Pront margin 4.00 6.21 Common and preferred stock $189,727 $189,727 Additional pald-in capital 143,006 127,776 Retained earnings 2,397,112 2,136,794 $2,729,845 $2,454,297 Less: Treasury stock, at cost (274,452) (186,680) Total stockholders' equity $2,455,393 $2,267,617 Total liabilities and stockholders equity $4,149,205 $3,846,450 Use the information above and below to respond to the following requirements. Statement Item January 1, 2018 (In Millions) Total assets $3,485,233 Total stockholders' equity 2,083,122 Year ended December 31, Industry Averages 2019 2018 Return on equity 5.31% 12.54% Profit margin 4.00 6.21 Asset turnover 0.83 1.96 Leverage 1.60 1.03 Required: Perform a Dupont analysis for 2018 and 2019. Round lotermediate calculations to four decimals. It required and your final answers to two decimal places Return on Equity 2019 2018