Hershey Co. reported the following income statement and balance sheet (in millions) for 2008. Construct the expanded Du Pont identity similar to Figure 3.1. What is the company’s return on equity?

Figure 3.1

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Income Statement Balance Sheet Assets $5,132.768 3,375.050 940.637 Liabilities & Equity $1,270.212 Sales Current liabilities Current assets COGS $ 37.103 715.312 Long-term debt Cash Accounts receivable Other costs Depreciation EBIT 227.183 $2,014.560 $ 589.898 592.530 $1,344.945 Shareholders' Inventory 97.876 $ 492.022 Total Fixed assets Interest $ 349.947 equity Total liabilities and EBT $2,289.774 Тахes 180.617 $ 311.405 Net income shareholders' equity $3,634.719 Total assets $3.634.719 Return on equity 26.58% Equity multiplier 4.79 Return on assets 5.54% Multiplied by Total asset Profit margin 6.39% Multiplied by turnover 0.87 Net income Sales $31,386 Sales Total assets $2,007 Divided by $31,386 Divided by $36,209 Pius Total costs $29,379 Subtracted from Fixed assets $20,898 Current assets S15,311 Sales $31,386 Cash Cost of goods sold $22,467 $4,490 Depreciation $1,169 Accounts Receivable Inventory $5,681 Selling, gen. & admin. expense $4,986 Interest S376 $5,140 Taxes $381