Based on the balance sheet ans income statement answer the following questions

Calculate ROE for each year. List each answer to two decimal places.

2021: %

2022: %

use DuPont Analysis to decompose ROE. In each case, list your answer to two decimal places.

• Profit Margin 2021:  %
• 2022: %
• Total Asset Turnover 2021: 
• 2022: 
• Equity Multiplier 2021: 
• 2022: 

Which items warrant further investigation?

Responses

• Sales, Costs, Fixed Assets, Current Liabilities

  Sales, Costs, Fixed Assets, Current Liabilities

• Sales, Current Assets, Fixed Assets, Current Liabilities

  Sales, Current Assets, Fixed Assets, Current Liabilities

• Current Assets, Current Liabilities

  

Transcribed Image Text:

INCOME STATEMENT Sales Cost of Goods Sold Depreciation EBIT Interest EBT Tax Net Income Dividends Addition to Retained Earnings 2021 2022 $56,700 $65,205 $34,200 $44,460 $4,350 $5,844 $18,150 $14,901 $5,900 $10,142 $12,250 $4,759 $2,573 $999 $9,677 $3,760 $1,925 $2,444 $7,752 $1,316 INCOME STATEMENT Sales Cost of Goods Sold Depreciation EBIT Interest EBT Tax Net Income Dividends Addition to Retained Earnings 2021 2022 $56,700 $65,205 $34,200 $44,460 $4,350 $5,844 $18,150 $14,901 $5,900 $10,142 $12,250 $4,759 $2,573 $999 $9,677 $3,760 $1,925 $2,444 $7,752 $1,316

Answer rating: 100% (QA)

Calculate the Return on Equity ROE for each year 2021 ROE Net Income 9677 Average Shareholders Equity Beginning Equity Ending Equity 2 7700 15452 2 11... View the full answer