Question: Using the income statement and balance sheet for Kau and Sons Co., compute the three components of return on equity'profitability, efficiency, and leverage'based on the
Using the income statement and balance sheet for Kau and Sons Co., compute the three components of return on equity'profitability, efficiency, and leverage'based on the DuPont framework, for the year2012.
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Kau and Sons Co. Income Statement For the Year Ended December 31, 2012 Revenues. $320,000 Expenses: Supplies expense Salaries expense Utilities expense Rent expense Other expenses Net income $124,000 33,200 7,100 29,000 7,700 201,000 $119,000 Kau and Sons Co. Balance Sheet December 31, 2012 Liabilities and Owners' Equity Assets $ 52,100 34,900 46,700 70,000 267,100 S 29,800 56,200 80,000 304,800 Cash. Accounts payable. Notes payable Capital stock . Retained earnings. Total liabilities and owners' equity Accounts receivable Supplies Land Buildings. Total assets $470,800 $470,800
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