The chief financial officer (CFO) of Beacon Publishing Company has asked for a DuPont analysis of the company over the last two years. The CFO has requested that the rate earned on total assets be broken into its profit margin and asset turnover components. The following information is available, from the financial statements:

a. Perform a DuPont analysis for 2006 and 2007.
b. Analyze the change in the rate earned on total assets for the twoyears.

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2006 2007 $700,000 77,000 Sales Net income $360,000 28,800 December 31, 2006 $200,000 December 31 2007 ecember 2005 Total assets $120,000 360,000