Following are selected financial data in $ thousands for the Hunter Corporation:

a. Calculate Hunter’s rate of return on total assets in 2017 and in 2016. Did the ratio improve or worsen?

b. Diagram the expanded DuPont system for Hunter for 2017. Insert the appropriate dollar amounts wherever possible.

c. Use the DuPont system to calculate the return on assets for the two years, and determine why they changed.

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2017 2016 $500 Current assets $400 Fixed assets, net 700 600 Total assets 1,000 1,200 Current liabilities 300 200 Long-term debt 200 200 Common equity 700 600 Total liabilities and equity $1,200 $1,000 $1,200 Net sales $1,500 Total expenses -1,390 -1,100 Net income 110 100