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The following table presents selected 2019 financial information for Sunder Company. Sunder Company Selected 2019 Financial Data Balance Sheet: Average total assets $1,000,000 Average total
The following table presents selected 2019 financial information for Sunder Company.
Sunder Company Selected 2019 Financial Data | |
---|---|
Balance Sheet: | |
Average total assets | $1,000,000 |
Average total liabilities | 500,000 |
Average stockholders' equity | 500,000 |
Income Statement | |
Sales revenue | $1,000,000 |
Earnings before interest (net of tax) | 20,000 |
Interest expense (net of tax) | 15,000 |
Net income | 5,000 |
Round answers to one decimal place (i.e., 0.0025 = 0.3%). Use negative signs with answers, when appropriate.
a. Compute Sunder's ROE, ROA, and ROFL for 2019
ROE | |
ROA | |
ROFL |
b. Use the DuPont analysis described in the Business Insight on page 230 to disaggregate ROE.
Net profit margin | |
Asset turnover | |
Financial leverage |
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