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table [ [ , , , TestCo,,,,, ] , [ , , , Balance Sheets,,,, ] , [ 1 5 ] , [ ,

\table[[,,,TestCo,,,,,],[,,,Balance Sheets,,,,],[15],[,Last Year,This Year,,,Last Year,This Year],[Assets,,,Liabilities and Owner's Equity,],[Current Assets,,,Current Liabilities,,],[Cash,250,300,Accounts Payable,700,650,],[AcctRec,350,400,Notes Payable,650,650,],[Inven.,850,900,,Total,,1,350,1,300,],[Total,1,450,1,600,,,8,,,],[,,,Long Term Debt,1,150,1,250,],[Fixed Assets],[Net Plant,-,,,Owner's Equity,,,],[and equipment,5,850,6,450,Common Stock and,1,000,1,100,],[,,paid in surplus,,,],[,,Retained Earnings,3,800,4,400,],[,,,,Equity,4,800,5,500,],[,,,,,,,-],[Total Assets,7,300,8,050,Total L+OE,,7,300,8,050,],[b,,,,,,,],[,,TestCo,,,,,],[,Income Statement,,,,,],[,This Year,,,,,],[534,,,,,,,,],[31,\table[[Sales],[Costs]],\table[[5,000],[2,900]],,,,,,]]
\table[[,TestCo],[Income Statement,],[,This Year],[Sales,5,000],[Costs,2,900],[Depreciation,600],[EBIT,1,500],[Interest Paid,300],[Taxable Income,1,200],[Taxes,400],[Net Income,800],[,],[Dividends,200],[Addition to,],[Retained Earn.,600]]
a) What was the firm's profit margin this year?
b) What was the total asset turnover this year?
c) What was the firm's equity multiplier this year?
d) Use the ratios you calculated in parts a-c to determine the Return on Equity by usin DuPont Identity (be sure to write the formula for the DuPont Identity, then use your answers from parts a-c to calculate).

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