1. State the formula For ROE

2. From the Table, Insert the values for NI and Equity.

3. Interpret your results.

Pettijohn Inc. The balance sheet and income to shown below are for Penijon Inc. Note that the time amortization charges, it does not any stoot of det hered during the text years, and the notes payable will be rolled over Balance Shelf Assets Cash and securities 201 Accounts receivable $ 1.3540 Inventories 9,660,0 Total current 134400 Net plant and equipment 524,654.0 Toalett 17460 Liabilities and Equity S420000 Accounts payable Notes payable $7.950.0 5500 Accrual 4200 Total current liabilities SIS Long-term bonds 10.9200 Total liabilities 529.4000 Common stock 360 Retained earnings Total.common cquity $12.00 Totalities and equity 30 Income Statement (Millions of 2012 Net sales $38.500.0 Operating costs except depth 354,970 Depreciation 3.00 Earnings befint and tires(EBIT) 3.2,793.0 Less interest XOCO 51743.0 Earnings before taxes (EBT) Tas 50 Net income Other data 173.00 Shares outstanding millions) 3 509 Common dividends 65 Intrate on notes payable & bodi 35 Federal plus state income taxe Year-end stock price 5775