Construct the DuPont Assignment | Homework For You
January 24th, 2020
Some recent financial statements for Smolira Golf, Inc., follow.
| SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016 |
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| 2015 | 2016 | 2015 | 2016 | |||||||||||||
| Assets | Liabilities and Owners’ Equity | |||||||||||||||
| Current assets | Current liabilities | |||||||||||||||
| Cash | $ | 3,061 | $ | 3,057 | Accounts payable | $ | 2,178 | $ | 2,650 | |||||||
| Accounts receivable | 4,742 | 5,731 | Notes payable | 1,775 | 2,166 | |||||||||||
| Inventory | 12,578 | 13,732 | Other | 95 | 112 | |||||||||||
| Total | $ | 20,381 | $ | 22,520 | Total | $ | 4,048 | $ | 4,928 | |||||||
| Long-term debt | $ | 12,900 | $ | 15,660 | ||||||||||||
| Owners’ equity | ||||||||||||||||
| Common stock and paid-in surplus | $ | 40,500 | $ | 40,500 | ||||||||||||
| Fixed assets | Accumulated retained earnings | 15,679 | 39,477 | |||||||||||||
| Net plant and equipment | $ | 52,746 | $ | 78,045 | Total | $ | 56,179 | $ | 79,977 | |||||||
| Total assets | $ | 73,127 | $ | 100,565 | Total liabilities and owners’ equity | $ | 73,127 | $ | 100,565 | |||||||
| SMOLIRA GOLF, INC. 2016 Income Statement |
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| Sales | $ | 188,370 | |||
| Cost of goods sold | 126,703 | ||||
| Depreciation | 5,283 | ||||
| EBIT | $ | 56,384 | |||
| Interest paid | 1,380 | ||||
| Taxable income | $ | 55,004 | |||
| Taxes | 19,251 | ||||
| Net income | $ | 35,753 | |||
| Dividends | $ | 11,955 | |||
| Retained earnings | 23,798 | ||||
Construct the DuPont identity for Smolira Golf. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profit margin and return on equity as a percent.)
| Profit margin | % | |
| Total asset turnover | times | |
| Equity multiplier | times | |
| Return on equity | % | |
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