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Problem 3-31 DuPont Analysis (LG3-6) Use the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC. Balance Sheet as of

Problem 3-31 DuPont Analysis (LG3-6)

Use the following financial statements for Lake of Egypt Marina, Inc.

LAKE OF EGYPT MARINA, INC. Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars)
2015 2014 2015 2014
Assets Liabilities and Equity
Current assets: Current liabilities:
Cash and marketable securities $ 60 $ 28 Accrued wages and taxes $ 40 $ 32
Accounts receivable 50 36 Accounts payable 50 40
Inventory 140 132 Notes payable 50 32
Total $ 250 $ 196 Total $ 140 $ 104
Fixed assets: Long term debt: $ 11 $ 124
Gross plant and equipment $ 300 $ 220 Stockholders equity:
Less: Depreciation 75 40 Preferred stock (8 million shares) $ 8 $ 8
Common stock and paid-in surplus (60 million shares) 60 60
Net plant and equipment $ 225 $ 180 Retained earnings 281 104
Other long-term assets 25 24
Total $ 250 $ 204 Total $ 349 $ 172
Total assets $ 500 $ 400 Total liabilities and equity $ 500 $ 400

LAKE OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2015 and 2014 (in millions of dollars)
2015 2014
Net sales (all credit) $ 700 $ 500
Less: Cost of goods sold 210 140
Gross profits $ 490 $ 360
Less: Other operating expenses 49 30
Earnings before interest, taxes, depreciation, and amortization (EBITDA) $ 441 $ 330
Less: Depreciation 35 25
Earnings before interest and taxes (EBIT) $ 406 $ 305
Less: Interest 56 35
Earnings before taxes (EBT) $ 350 $ 270
Less: Taxes 105 81
Net income $ 245 $ 189
Less: Preferred stock dividends $ 8 $ 8
Net income available to common stockholders $ 237 $ 181
Less: Common stock dividends 60 60
Addition to retained earnings $ 177 $ 121
Per (common) share data:
Earnings per share (EPS) $ 3.950 $ 3.020
Dividends per share (DPS) $ 1.000 $ 1.000
Book value per share (BVPS) $ 5.680 $ 2.730
Market value (price) per share (MVPS) $ 15.050 $ 12.850

Construct the DuPont ROA and ROE breakdowns for Lake of Egypt Marina, Inc. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

DuPont Analysis
ROA %
ROE %

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