Problem 1 Given the following financial statements for Voice-Soft, a voice recognition company, answer the questions on the next page. Income Statements Sales Cost of goods sold (COGS) EBITDA Depreciation and Amortization EBIT Interest Expense EBT Taxes (20%) Net Income Year Ended December 31, 20X2 20X1 8000 5000 7300 4380 700 620 200 120 500 500 75 100 425 400 85 80 340 320 Balance Sheets As of December 31, 20X2 20X1 Assets Current assets: Cash Short term investments Accounts receivable Inventories Total current assets Net plant and equipment Total assets 300 460 640 800 2200 1800 4000 20 100 400 480 1000 1500 2500 150 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 200 600 800 1200 2000 350 500 750 1250 1800 200 2000 4000 1030 220 1250 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? 1