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The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: Income statement information Net sales ($ in thousands) 2021 $5,200 2020
The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: Income statement information Net sales ($ in thousands) 2021 $5,200 2020 Net income Balance sheet information Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities 180 $4,200 124 $ 800 1,100 $1,900 $ 600 $ 750 950 $1,700 $ 450 750 Common stock 400 750 400 Retained earnings 150 100 Liabilities and shareholders' equity $1,900 $1,700 Required: 1. Determine the following components of the DuPont framework for 2021: 2. Write an equation that relates these components in calculating ROE. Use the Peabody Toys data to show that the equation is correct. Determine the following components of the DuPont framework for 2021: Choose Numerator: Net income $ Choose Numerator: Net income $ Profit Margin (%) Choose Denominator: Net sales 180 $ Asset Turnover Profit Margin Profit Margin 5,200 3.46% Choose Denominator: Average total assets Asset Turnover Asset turnover 180,000 $ 1,800,000 0.10 Equity Multiplier Choose Denominator: Equity Multiplier Equity multiplier 0 Choose Numerator: Choose Numerator: Net income $ Return on Shareholders' Equity (%) Choose Denominator: Average total equity Return on Equity Return on equity 180,000/ $ 525,000 34.3%
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