$[$ROE Component Ratios and Model$]$ Refer to the financial statement data provided below for Safety$-$First,

Inc.

SAFETY$-$FIRST, INC.

Income Statements $($in $ Thousands$)$

Net sales

Cost of goods sold

Gross profit

Operating expenses

Interest

Income before taxes

Income taxes

Net income

Balance Sheets $($in $ Thousands$)$

Cash

Accounts receivable

Inventories

Total current assets

Gross fixed assets

Less accumulated depreciation

Net fixed assets

Total assets

Accounts payable

Bank loan

Accrued liabilities

Total current liabilities

Long$-$term debt

Common stock

Retained earnings

Total liabilities and equity

A$.$ Calculate the net profit margin, the sales$-$to$-$total$-$assets ratio, and the equity multiplier for both $2018$

and $2019$ using year$-$end $($rather than average$)$ balance sheet data.

B$.$ Use the results from Part A to calculate the venture's return on equity in each year.

C$.$ Describe what happened in terms of the financial performance of the Safety$-$First, Inc. between $2018$

and $2019.$

Please do your assignment in the Excel spreadsheet and upload the assignment to the proper assignment

folder.