. Using the financial statements below:

a.Prepare the funds flow statement for the last year.

b.Prepare a DuPont ROE analysis comparing Year 3 and 4.

c.Explain what happened to the funds flow generally and in terms of the DuPont ratios.

"l-IYPOTHETICAL COMPANY \"Yea\" Year2 Year 3 Year Assets Cash 40 1,512 3,018 1,766 Accounts Receivable 1,380 1,800 1,706 1,690 Inventories 22,028 28,128 31,978 31,794 Total Current Assets 23,448 31,440 36,702 35,250 Property, Plant, and Equipment 42,460 49,220 59,394 64,902 Accumulated Depreciation (11,110) (12,250) (16,400) (19,094) Net Property, Plant, and Equipment 31,350 36,970 42,994 45,808 Other Assets m g w E Total Assets 57,100 71,624 82, 328 83,632 Liabilities and Shareholders' Equity Accounts Payable 8,208 11,814 12,884 15,256 Notes Payable 3,292 6,445 11,017 6,191 Other Current Liabilities 3,312 4,388 4,428 5,422 Total Current Liabilities 14,812 22,627 28,329 26,869 Long-Term Debt 20,920 24,640 26,406 25,192 3Total Liabilities 35,732 47,267 54,735 52,061 Common Stock 1,394 1,702 2,198 3,790 Retained Earnings - Beginning 17,987 19,974 22,655 25,395 Net Income 1,987 2,681 2,740 3,056 Dividend (670) Retained Earnings - Ending 19,974 22,655 25,395 27,781 Total Shareholders' Equity 21,368 24,357 27,593 31,571 Total Liabs and Shareholders' Equity 57,100 71,624 82,328 83,632 Income Statements for Years ending 2 3 4 Sales 83,412 94,749 106,146 Cost of Goods Sold 65,586 74,564 83,663 Marketing and Administrative 12,858 14,951 16,788 Interest 706 888 845 Income Taxes 1,581 1,606 1 794 Net Income 2,681 2,740 3,056