The following condensed information was reported by Peabody Toys, Inc., for 2016 and 2015:

($ in 000s)

2016

2015

Income statement information

Net sales

$

5,800

$

4,800

Net income

184

136

Balance sheet information

Current assets

$

860

$

810

Property, plant, and equipment (net)

1,640

1,290

Total assets

$

2,500

$

2,100

Current liabilities

$

1,180

$

830

Long-term liabilities

810

810

Paid-in capital

300

300

Retained earnings

210

160

Liabilities and shareholders equity

$

2,500

$

2,100

Profit Margin (%)
	Choose Numerator:	0	Choose Denominator:	=	Profit Margin
		0		=	Profit Margin
		0		=	0
Asset Turnover
	Choose Numerator:	0	Choose Denominator:	=	Return on Assets
	Net income	/	Average total assets	=	Return on assets
		/		=	0
Equity Multiplier
	Choose Numerator:	0	Choose Denominator:	=	Return on Assets
		/		=	Return on assets
		/		=	0
Return on Shareholders' Equity (%)
	Choose Numerator:	0	Choose Denominator:	=	Return on Shareholders' Equity
	Net income	/	Average total equity	=	Return on shareholders' equity
		/		=	0

2.

Write an equation that relates these components in calculating ROE. Use the Peabody Toys data to show that the equation is correct. (Round your answers to 2 decimal points.)

Profit margin		Asset turnover		Equity multiplier	=	ROE
	+				=	0.00%