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The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: ($ in thousands) 2021 2020 Income statement information Net sales $
The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020:
($ in thousands) | |||||||
2021 | 2020 | ||||||
Income statement information | |||||||
Net sales | $ | 6,600 | $ | 5,600 | |||
Net income | 248 | 152 | |||||
Balance sheet information | |||||||
Current assets | $ | 940 | $ | 890 | |||
Property, plant, and equipment (net) | 2,360 | 2,010 | |||||
Total assets | $ | 3,300 | $ | 2,900 | |||
Current liabilities | $ | 1,720 | $ | 1,370 | |||
Long-term liabilities | 890 | 890 | |||||
Common stock | 400 | 400 | |||||
Retained earnings | 290 | 240 | |||||
Liabilities and shareholders equity | $ | 3,300 | $ | 2,900 | |||
Required:
- Determine the following components of the DuPont framework for 2021:
- Write an equation that relates these components in calculating ROE. Use the Peabody Toys data to show that the equation is correct.
Required 1 Required 2 Determine the following components of the DuPont framework for 2021: Choose Numerator: Profit Margin (%) I Choose Denominator: 1 Profit Margin = Profit Margin 1 0 Choose Numerator: = Asset Turnover 1 Choose Denominator: 1 1 Asset Turnover Asset turnover = 0 Choose Numerator: Equity Multiplier I Choose Denominator: 1 1 Equity Multiplier Equity multiplier = 0 Choose Numerator: Return on Shareholders' Equity_(%) I Choose Denominator: Return on Equity 1 Return on equity 1 0 Complete this question by entering your answers in the tabs below. Required 1 Required 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%
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