Prepare the DuPont model to identify which company has a lower return on equity. Then briefly explain exactly why the return on equity is lower. Make sure you show all your calculations and support your answers with appropriate analytics.

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The numbers below are for Misty Mountain and Fanghorn Forest: Misty Mountain Fanghorn Forest Cash $ 1,500 $ 1,600 Accounts receivable 6,000 12,000 Inventory 6,600 14,000 Property, plant and equipment 7,000 18,600 Total assets $ 21,100 $ 46,200 Total liabilities St $ 5,500 $ 19,300 Total equity 7,033 15,400 Sales $ 21,000 $ 55,000 Cost of goods sold 16,800 44,000 Wage expense 2,400 6,300 Other expenses 1,000 1,500 Net income $ 800 $ 3,200 The numbers below are for Misty Mountain and Fanghorn Forest: Misty Mountain Fanghorn Forest Cash $ 1,500 $ 1,600 Accounts receivable 6,000 12,000 Inventory 6,600 14,000 Property, plant and equipment 7,000 18,600 Total assets $ 21,100 $ 46,200 Total liabilities St $ 5,500 $ 19,300 Total equity 7,033 15,400 Sales $ 21,000 $ 55,000 Cost of goods sold 16,800 44,000 Wage expense 2,400 6,300 Other expenses 1,000 1,500 Net income $ 800 $ 3,200