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Return on Investment, DuPont Analysis and Financial Leverage The following table presents selected 2016 financial information for Sunder Company. Sunder Company Selected 2016 Financial

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Return on Investment, DuPont Analysis and Financial Leverage The following table presents selected 2016 financial information for Sunder Company. Sunder Company Selected 2016 Financial Data Balance Sheet: Average total assets $1,200,000 Average total liabilities 700,000 Average stockholders' equity 700,000 Income Statement Sales revenue $1,200,000 Earnings before interest (net of tax) 23,000 Interest expense (net of tax) Net income 18,000 8,000 Round answers to one decimal place (i.e., 0.0125 = 1.3%). Use negative signs with answers, when appropriate. a. Compute Sunder's ROE, ROA, and ROFL for 2016 % % ROE ROA ROFL % b. Use the DuPont analysis described in the Business Insight on page 230 to disaggregate ROE. Net profit margin Asset turnover Financial leverage %

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