FIN3250 AOL Assignment Spring 2021 Problem 1 Given the following financial statements for Voice-Soft, a voice recognition B D ( 1 Income Statements Year Ended December 31, 20X2 20X1 8000 5000 4 7300 4380 700 620 7 200 120 Sales 5 Cost of goods sold (COGS) EBITDA Depreciation and Amortization EBIT 9 Interest Expense 10 EBT Taxes (20%) Net Income 8 500 500 75 100 425 400 11 85 80 12 340 320 = As of December 31, 20X2 20X1 Assets 300 20 460 100 640 400 Current assets: Cash Short term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 800 480 2200 1000 1800 1500 4000 2500 200 150 600 350 800 500 1200 750 Liabilities and Stockholders' Equity Current liabilities: Notes payable Accounts payable Total current liabilities Long-term debt Total liabilities Common equity: Common stock Retained earnings Total common equity Total liabilities and stockholders' equity 2000 1250 1800 1030 200 220 2000 1250 4000 2500 1.) Calculate ROE using the DuPont equation for Voice-Soft in 20X1 and 20x2. 2.) What caused the change in ROE between 20X1 and 20X2