The income statement and the balance sheet for the Hamblin Company for the year ended December 31, 2003, are provided below. 

1. Using the DuPont framework, compute Hamblin’s return on equity (ROE). 2. Prepare a common-size balance sheet, using total revenue as the basis for comparison. 3. Interpretive Question: Based on your analysis in (1) and (2), does Hamblin Company appear to be in good shape?

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Sales revenue Expenses: Cost of goods sold Salaries expense. Interest expense Net income Hamblin Company Income Statement For the Year Ended December 31, 2003 $150,000 45,000 $270,000 10,500 205,500 $ 64,500