Prepare the DuPont model to identify which company has a lower return on equity. Then briefly explain exactly why the return on equity is lower. Make sure you show all your calculations and support your answers with appropriate analytics.

The numbers below are for Misty Mountain and Fanghorn Forest: Misty Mountain Fanghorn Forest Cash $ 1,500 $ 1,600 Accounts receivable 6,000 12,000 Inventory 6,600 14,000 Property, plant and equipment 7,000 18,600 Total assets $ 21,100 $ 46,200 Total liabilities St $ 5,500 $ 19,300 Total equity 7,033 15,400 Sales $ 21,000 $ 55,000 Cost of goods sold 16,800 44,000 Wage expense 2,400 6,300 Other expenses 1,000 1,500 Net income $ 800 $ 3,200