Question

Some recent financial statements for Smolira Golf, Inc., follow.

SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016
	2015				2016					2015				2016
Assets									Liabilities and Owners’ Equity
Current assets									Current liabilities
Cash	$	3,211			$	3,307			Accounts payable	$	2,153			$	2,600
Accounts receivable		4,767				5,781			Notes payable		1,750				2,116
Inventory		12,478				13,782			Other		90				107
Total	$	20,456			$	22,870			Total	$	3,993			$	4,823
									Long-term debt	$	13,400			$	16,160
									Owners’ equity
									Common stock and paid-in surplus	$	38,000			$	38,000
Fixed assets									Accumulated retained earnings		15,654				39,112
Net plant and equipment	$	50,591			$	75,225			Total	$	53,654			$	77,112
Total assets	$	71,047			$	98,095			Total liabilities and owners’ equity	$	71,047			$	98,095

  

SMOLIRA GOLF, INC. 2016 Income Statement
Sales			$	187,370
Cost of goods sold				126,203
Depreciation				5,333
EBIT			$	55,834
Interest paid				1,430
Taxable income			$	54,404
Taxes				19,041
Net income			$	35,363
Dividends	$	11,905
Retained earnings		23,458

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		%

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE