QUESTION 7

Some recent financial statements for Smolira Golf Corporation follow. SMOLIRA GOLF CORPORATION 2020 and 2021 Balance Sheets 2021 Assets 2020 Current assets Cash $24,076 $24,400 Accounts receivable 12,748 15,500 Inventory 25,742 27,400 Total $ 62,566 $67,300 Fixed assets Net plant and equipment $327,695 $362,700 $ Total assets $ 390,261 430,000 SMOLIRA GOLF CORPORATION 2021 Income Statement Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes (23%) Net income Dividends Retained earnings $ 23,000 18,478 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Other Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity $378,618 254,000 56,150 $ 68,468 14,600 $53,868 12,390 $ 41,478 2020 2021 $ 23,484 $27,400 13,000 11,100 11,871 17,500 $ 48,355 $ 56,000 $72,000 $85,616 $ 45,000 $ 45,000 224,906 243,384 $ $ 269,906 288,384 $ 390,261 $ 430,000 Construct the DuPont identity for Smolira Golf Corporation. The company's profit margin is The total asset turnover is The equity multiplier is Using the DuPont identity, the company's ROE is 10.96 percent. times. times. percent. (Use year-end figures rather than average values where appropriate. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) (Round your answer to 2 decimal places, e.g., 32.16.) (Round your answer to 2 decimal places, e.g., 32.16.) (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)