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INCOME STATEMENT Revenue Cost of goods sold Gross profit Year 0 4,477 2,556 1,921 141 1,084 696 109 Year 1 4,905 2,776 2,129 165 1,183

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INCOME STATEMENT Revenue Cost of goods sold Gross profit Year 0 4,477 2,556 1,921 141 1,084 696 109 Year 1 4,905 2,776 2,129 165 1,183 781 303 Depreciation Other expenses Operating income Interest Expense Income before taxes Provision for income taxes @ 21% 587 123 478 100 Net income 464 378 Year 0 Year o BALANCE SHEEET ASSETS 433 Cash and marketable securities Short-Term Investments Receivables Inventories Total Current Assets Total Fixed Assets 581 496 226 1,736 2,357 210 568 563 249 1,590 2,514 Total assets 4,093 4,104 LIABILITIES AND EQUITY Notes Payable Accounts payable Accruals 110 511 250 115 451 Total current liabilities Total non-current liabilities 621 1,539 816 1,446 Total liabilities 2,160 2,262 Common stock and additional paid-in capital Retained earnings 486 1,447 615 1,227 Total stockholders' equity 1,933 1,842 Total liabilities and stockholders' equity 4,093 4,104 117.68 63 Diluted no. of shares Stock price WACC Dividend & re purchases per share 99.60 76 7% 6.00 $ QUESTION 12 3.25 points Save Answer Du Pont ratio analysis breaks the return-on-equity ratio as following: ROE = Profit margin * Total Assets turnover * Equity Multiplier What are the three components (profit margin, total assets turnover, and equity multiplier) for Lowell Inc. for Year 1? Please use the information provided in the sheet attached here. Lowell.pdf O 0.10,1.31, and 1.64 O 0.10,1.10, and 2.10 O 0.10.1.09, and 2.12 O 0.08,1.20, and 2.23 QUESTION 13 3.25 points Save Answer What is the amount of Economic Value Added (EVA) for Year 1 for Lowell Inc using the information in the sheet attached here? Lowell.pdf 0 544 0409 378 347

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