1. The DuPont formula defines ROE as a function of:
   • Operating margin
   • Asset turnover
   • Interest burden
   • Financial leverage
   • Income tax rate

1. Calculate each of the five components listed above for 2020 and 2021 and calculate the ROE for 2020 and 2021 using all of the five components.

A B $ $ $ $ 2021 979 76 9 2020 542 $ 38 $ 3 $ 3 $ 32 $ 13 $ 19 $ $ 67 $ $ 37 30 1 Income Statement 2 Revenue 3 Operating income 4 Depreciation 5 Interest expense 6 Pretax income 7 Income taxes 8 Net Income 9 10 Balance Sheet 11 Fixed assets 12 Total assets 13 Working capital 14 Total debt 15 Total shareholders' equity 16 $ $ $ $ $ 2020 41 $ 245 $ 123 $ 16 $ 159 $ 2021 70 291 157 220