MN17e Ch 14 Prob 5 Following are selected financial data in $ thousands for the Hunter Corporation. 2020 2019 Current assets $500 $4,040 Fixed assets, net $700 $600 Total assets $1,200 $1,000 Current liabilities $300 $200 Long-term debt $200 $200 Common equity $700 $600 Total liabilities and equity $1,200 $1,000 Net sales $1,500 $1,200 Total expenses ($1,390) ($1,100) Net income $110 $100 a) Calculate Hunter's rate of return on total assets in 2020 and 2019. Did the ratio improve or worsen? Return on assets b) Diagram the expanded DuPont system for Hunter for 2020. Insert the appropriate dollar amounts wherever possible. (See suggested diagram below) c) Use the Du Pont system to calculate the return on assets for the two years, and determine why they changed (i.e., which components caused the change). Return on assets Return on equity Return on assets multiplied by Equity multiplier Profit margin multiplied by Asset turnover Total assets divided by Stockholders equity Net income divided by Sales Sales divided by Total assets Current assets plus Fixed assets Common stock + RE (data not provided)

Foliowinc are selected Snancial data in \$ thougndi for the Huiter Corporation. Calculate Wunteris rate of return on total amets in 2020 and 2019. Did the ratio impereve or worsen? desermine why they changed (0.es, willch components cavied the chargol)