Refer to the facts described in BE 5-15. Show the DuPont framework's calculation of the three components of the 2011 return on shareholders' equity for Anderson TV and Appliance.
In BE 5-15, the 2011 income statement for Anderson TV and Appliance reported sales revenue of $420,000 and net income of $65,000. Average total assets for 2011 was $800,000. Shareholders' equity at the beginning of the year was $500,000 and $20,000 was paid to shareholders as dividends. There were no other shareholders' equity transactions that occurred during the year. Calculate the profit margin on sales, return on assets, and return on shareholders' equity for 2011.

  • CreatedJune 24, 2013
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