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Use the financial statements below to calculate the firm's ROE using the full DuPont formula - that means you must show the calculation using
Use the financial statements below to calculate the firm's ROE using the full DuPont formula - that means you must show the calculation using all three components. You must type in both the answer and all of your work to receive credit. Be sure to use 4 decimal places (25.25% or 0.2525). Acme Products, Inc. Balance Sheets ASSETS Cash Receivables Inventory Property, plant & equipment Total assets. LIABILITIES & EQUITY Accounts payables Accrued expenses Long-term debt Common stock. Paid-in Capital Retained earnings Total liabilities and equity current prior yr yr 500 400 750 600 1,125 900 2,750 2,200 5,125 4,100 625 500 500 400 1,750 1,400 750 600 250 200 1,250 1,000 5,125 4,100 Acme Products, Inc. Income Statement Sales (all credit) Cost of Goods Sold Gross Profit Operating expenses Depreciation. Opertating income Interest expense Taxable income Taxes (23%) Net income - current yr 7,000 4,000 3,000 1,400 400 1,200 100 1,100 253 847
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