Calculate Return on Assets (ROA) and Return on Equity (ROE) using Du-Pont Equation.

Pitts Corporation Balance Sheet Income Statement 2003 2004 2004 ASSETS Cash and equivalents Accounts Receivable Inventory Total Current Assets 190 560 410 1,160 40% 200 600 440 1,240 Total Revenues Cost of Goods Sold Gross Profit 3,000 1,200 1,800 33% 1,000 27% 800 Gross Fixed Assets Accumulated Depreciation Net Fixed Assets 2,200 2,600 (900) (1,200) 1,300 1,400 300 10% 17% 500 TOTAL ASSETS 2,460 2.640 Operating Expenses EBITDA Depreciation EBIT (Operating Income) Interest Expense EBT (Pre-tax Income) Taxes Net Income Dividends Change in Retained Earnings 3% 13% 100 400 40% LIABILITIES AND EQUITY Accounts Payable Notes Payable Accrued Taxes and Expenses Total Current Liabilities 285 200 140 625 300 250 150 700 160 240 160 80 Long-term Debt 865 890 500 0.48 Shares Outstanding EPS Dividends per Share 200 200 570 970 Common Stock Additional Paid-in-Capital Retained Earnings Total Shareholder's Equity TOTAL LIABILITIES AND EQUITY 0.32 200 200 650 1,050 2.460 2,640