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 | $ | 2,941 | $ | 2,857 | Accounts payable | $ | 2,198 | $ | 2,690 | |||||||
| Accounts receivable | 4,722 | 5,691 | Notes payable | 1,795 | 2,206 | |||||||||||
| Inventory | 12,658 | 13,692 | Other | 99 | 116 | |||||||||||
| Total | $ | 20,321 | $ | 22,240 | Total | $ | 4,092 | $ | 5,012 | |||||||
| Long-term debt | $ | 14,200 | $ | 16,960 | ||||||||||||
| Owners’ equity | ||||||||||||||||
| Common stock and paid-in surplus | $ | 42,500 | $ | 42,500 | ||||||||||||
| Fixed assets | Accumulated retained earnings | 15,699 | 39,769 | |||||||||||||
| Net plant and equipment | $ | 56,170 | $ | 82,001 | Total | $ | 58,199 | $ | 82,269 | |||||||
| Total assets | $ | 76,491 | $ | 104,241 | Total liabilities and owners’ equity | $ | 76,491 | $ | 104,241 | |||||||
| SMOLIRA GOLF, INC. 2016 Income Statement |
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| Sales | $ | 189,170 | |||
| Cost of goods sold | 127,103 | ||||
| Depreciation | 5,243 | ||||
| EBIT | $ | 56,824 | |||
| Interest paid | 1,340 | ||||
| Taxable income | $ | 55,484 | |||
| Taxes | 19,419 | ||||
| Net income | $ | 36,065 | |||
| Dividends | $ | 11,995 | |||
| Retained earnings | 24,070 | ||||
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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