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USE THE FOLLOWING INFORMATION TO CONSTRUCT AN INCOME STATEMENT AND BALANCE SHEET FOR 2011. ASSUME THE TAX RATE IS 40%. (COMMON EQUITY IS A PLUG
USE THE FOLLOWING INFORMATION TO CONSTRUCT AN INCOME STATEMENT AND BALANCE SHEET FOR 2011. ASSUME THE TAX RATE IS 40%. (COMMON EQUITY IS A PLUG IN NUMBER)
ITEM | 2010 | 2011 |
SALES | 10,000 | 12,000 |
DEPRECIATION | 3,000 | 3,000 |
COST OF GOODS SOLD | 2,000 | 2,000 |
OTHER EXPENSES | 3,000 | 4,000 |
INTEREST | 1,000 | 1,000 |
CASH | 1,000 | 1,000 |
ACCOUNTS RECEIVABLE | 3,000 | 3,000 |
S.T. NOTES PAYABLE | 1,000 | 1,000 |
L.T. DEBT | 10,000 | 11,000 |
NET FIXED ASSETS | 20,000 | 20,000 |
ACCOUNTS PAYABLE | 2,000 | 2,000 |
INVENTORY | 3,000 | 3,000 |
DIVIDENDS | 600 | 600 |
Please calculate the firm's three components DuPont ROE for 2011.
A. 10 x 2.077 x .044 = 9.23
B. 0.1 x 2.077 x 0.44 = 0.092
C. 0.05 x 0.519 x 0.481 = 0.012
D. 0.1 x 0.519 x 0.481 = 0.025
E. 0.1 x 0.519 x 0.44 = 0.023
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