Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

($ in thousands) 2021 2020 Income statement information Net sales $6,900 $5,900 Net income 374 158 Balance sheet information Current assets $ 970 $ 920

image text in transcribedimage text in transcribed

($ in thousands) 2021 2020 Income statement information Net sales $6,900 $5,900 Net income 374 158 Balance sheet information Current assets $ 970 $ 920 Property, plant, and equipment (net) 2,630 2,280 Total assets $3,600 $3,200 Current liabilities $1,660 $1,310 Long-term liabilities 920 920 Common stock 700 700 Retained earnings 320 270 Liabilities and shareholders' $3,600 $3,200 equity Required: 1. Determine the following components of the DuPont framework for 2021: 2. Write an equation that relates these components in calculating ROE. Use the Peabody Toys data to show that the equation is correct. Complete this question by entering your answers in the tabs below. Required Required 2 Determine the following components of the DuPont framework for 2021: Profit Margin %) Choose Numerator: / Choose Denominator: = Profit Margin 1 Profit Margin 1 Asset Turnover Choose Numerator: 7 Choose Denominator: = Asset Turnover 1 = Asset turnover / 0 Equity Multiplier Choose Numerator: I Choose Denominator: = Equity Multiplier 1 = Equity multiplier 0 Return on Shareholders' Equity (%) Choose Numerator: I Choose Denominator: = Return on Equity 1 = Return on equity 1 0 ($ in thousands) 2021 2020 $6,900 374 $5,900 158 Income statement information Net sales Net income Balance sheet information Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common stock Retained earnings Liabilities and shareholders' equity $ 970 2,630 $3,600 $1,660 920 700 320 $3,600 $ 920 2,280 $3,200 $1,310 920 700 270 $3,200 Required: 1. Determine the following components of the DuPont framework for 2021: 2. Write an equation that relates these components in calculating ROE. Use the Peabody Toys data to show that the equation is correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 ***** ........................................................ Write an equation that relates these components in calculating ROE. Use the Peabody Toys data to show that the equation is correct. (Round your answers to 2 decimal points.). Profit margin Asset turnover Equity multiplier = ROE 0.00%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Count Down The Past, Present And Uncertain Future Of The Big Four Accounting Firms

Authors: Jim Peterson

2nd Edition

1787147010, 9781787147010

More Books

Students also viewed these Accounting questions