The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020:

	($ in thousands)
	2021				2020
Income statement information
Net sales	$	6,800			$	5,800
Net income		330				156
Balance sheet information
Current assets	$	960			$	910
Property, plant, and equipment (net)		2,540				2,190
Total assets	$	3,500			$	3,100
Current liabilities	$	1,680			$	1,330
Long-term liabilities		910				910
Common stock		600				600
Retained earnings		310				260
Liabilities and shareholders equity	$	3,500			$	3,100

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.

The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: ($ in thousands) 2021 2020 $6,800 $5,800 156 330 Income statement information Net sales Net income Balance sheet information Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common stock Retained earnings Liabilities and shareholders' equity $ 960 2,540 $3,500 $1,680 910 600 310 $3,500 $ 910 2,190 $3,100 $1,330 910 600 260 $3,100 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: Profit Margin (%). Choose Denominator: Choose Numerator: / Profit Margin Profit Margin Net income / Net sales $ 3301 $ 6,800 4.85% Asset Turnover Choose Numerator: 1 Choose Denominator: Asset Turnover Net sales 1 Asset turnover Average total assets $ $ 6,8007 3,300 2.06 Equity Multiplier Choose Denominator: Choose Numerator: / Equity Multiplier Equity multiplier Average total assets $ 5,050 X/ Ending shareholders' equity X $ 1,040 X = 4.86 Choose Numerator: Return on Shareholders' Equity (%) Choose Denominator: Ending shareholders' equity X = $ 910 X Return on Equity Return on equity 1 / 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.) x Asset turnover Equity multiplier ROE Profit margin 4.85% 1.94 X 3.85 x = 36.22%