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The numbers below are for Jasper Company and Western Company: Cash Accounts receivable Inventory Property, plant, and equipment Total assets Total liabilities Total equity
The numbers below are for Jasper Company and Western Company: Cash Accounts receivable Inventory Property, plant, and equipment Total assets Total liabilities Total equity Sales Cost of goods sold Wage expense Other expenses Net income Jasper Western $ 100 $ 600 2,500 7,000 1,000 8,000 2,400 14,400 $ 6,000 $30,000 $ 3,600 $18,000 2,400 12,000 $10,000 $60,000 8,000 48,000 500 4,500 1,200 5,000 300 2,500 Briefly explain exactly why Jasper's return on equity is lower than Western's. Hint: Start your analysis by using the DuPont Framework.
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