Assets       Liabilities and Owners' Equity       2020 2021     2020 2021 Current Assets       Current liabilities     Cash $32,653 $39,350   Accounts Payable $34,886 $44,285 Accounts Receivable $16,911 $28,877   Notes Payable $18,058 $16,848 Inventory $34,495 $44,336   Other $18,871 $25,619 Total $84,059 $112,563   Total $71,815 $86,752         Long term debt $110,000 $140,000 Fixed Assets       Owners' Equity     Net plant and equipment $441,099 $502,872

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
icon
Related questions
Question

Assets

     

Liabilities and Owners' Equity

   
 

2020

2021

   

2020

2021

Current Assets

     

Current liabilities

   

Cash

$32,653

$39,350

 

Accounts Payable

$34,886

$44,285

Accounts Receivable

$16,911

$28,877

 

Notes Payable

$18,058

$16,848

Inventory

$34,495

$44,336

 

Other

$18,871

$25,619

Total

$84,059

$112,563

 

Total

$71,815

$86,752

       

Long term debt

$110,000

$140,000

Fixed Assets

     

Owners' Equity

   

Net plant and equipment

$441,099

$502,872

 

Common stock

$55,000

$55,000

       

Accumulated retained earnings

$288,343

$333,683

       

Total

$343,343

$388,683

             

Total Assets

$525,158

$615,435

 

Total liabilities and owners' equity

$525,158

$615,435

 

 

 

Income statement for 2021:

 

Sales

 

$531,750

COGS

 

$377,294

Depreciation

 

$46,686

EBIT

 

$107,770

Interest paid

 

$20,650

Taxable income

 

$87,120

Taxes (25%)

 

$21,780

Net income

 

$65,340

     

Dividends

$20,000

 

Retained earnings

$45,340

 

 

Show the DuPont identity, i.e., show how ROE can be separated into three different ratios involving profitability, efficiency, and capital structure. What is the firm’s return on equity?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education