Question: Given Ratio based on ending balances Year -1 Year 1 Year 2 Net profit (NP) $12,500 $13,750 $14,125 Total sales (TS) $290,000 $295,800 $301,716 Total

Given

Ratio based on ending balances

Year -1

Year 1

Year 2

Net profit (NP)

$12,500

$13,750

$14,125

Total sales (TS)

$290,000

$295,800

$301,716

Total assets (TA)

$200,000

$190,000

$180,500

Total equity (TE)

$60,000

$60,600

$61,206

What is the solution?

1. Find ROS%; ROA%; TAT; EM%; ROE%, assume;

a. ending balances,

b. average balances

2. Use DuPont Model to find ROE%, show all your calculations

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