2021Bethesda Mining Company reports the following balance sheet information for 2021 and 2022.AssetsCurrent assetsBETHESDA MINING COMPANYBalance Sheets as of December 31, 2021 and 2022Liabilities and Owners' EquityCurrent liabilities20222021CashAccounts receivableInventory$ 31,98258,781131,971$ 41,399Accounts payable$ 193Total$ 222,73479,139198,632$ 319,170Notes payable88Total$ 281Long-term debt$ 244Owners' equityFixed assetsNet plant and equipmentTotal assets$ 657,447$ 880,181$ 589,328$ 908,498Common stock and paid-in surplusAccumulated retained earningsTotal$ 211143$ 354Total liabilities and owners' equity$ 880Suppose that the Bethesda Mining Company had sales of $2,186,873 and net income of $106,381 for the year endingDecember 31, 2022. Calculate ROE using the DuPont identity.Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter theprofit margin and return on equity as a percent.Profit marginTotal asset turnoverEquity multiplier0.05 %2.45 x times2.35timesReturn on equity0.28 × %

Calculate the Profit Margin: Profit Margin=Net Income/SalesProfit Margin=106,381/2,186,873 Calculate…

Answered: 2021 Bethesda Mining Company reports…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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