The following are the financial statements for Ivanhoe Consumer Products Company for the fiscal year...
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Accounting
The following are the financial statements for Ivanhoe Consumer Products Company for the fiscal year ended September 30, 2017.
Ivanhoe Consumer Products Company Income Statement for the Fiscal Year Ended September 30, 2017
Net sales
$57,640
Cost of products sold
24,507
Gross profit
$33,133
Marketing, research, administrative expense
12,100
Depreciation
780
Operating income (loss)
$20,253
Interest expense
487
Earnings (loss) before income taxes
$19,766
Income taxes
6,076
Net earnings (loss)
$13,690
Ivanhoe Consumer Products Company Balance Sheet as of September 30, 2017
Assets:
Liabilities and Equity:
Cash and marketable securities
$6,200
Accounts payable
$3,710
Investment securities
427
Accrued and other liabilities
7,760
Accounts receivable
4,746
Taxes payable
2,410
Inventory
4,100
Debt due within one year
7,210
Deferred income taxes
978
Prepaid expenses and other receivables
2,252
Total current assets
$18,703
Total current liabilities
$21,090
Property, plant, and equipment, at cost
31,304
Long-term debt
12,410
Less: Accumulated depreciation
10,897
Deferred income taxes
1,690
Net property, plant, and equipment
$20,407
Other noncurrent liabilities
2,100
Net goodwill and other intangible assets
27,900
Total liabilities
$37,290
Other noncurrent assets
1,940
Convertible Class A preferred stock
1,140
Common stock
2,100
Retained earnings
28,420
Total stockholders equity
$31,660
Total assets
$68,950
Total liabilities and equity
$68,950
Using the DuPont identity, calculate the return on equity for Ivanhoe, after calculating the ratios that make up the DuPont identity. (Round ROA and ROE to one decimal place, e.g 12.5 or 12.5% and all other answers to 2 decimal places, e.g. 12.55 or 12.55%.)
Using the DuPont identity, calculate the return on equity for Ivanhoe, after calculating the ratios that make up the DuPont identity. (Round ROA and ROE to one decimal place, e.g 12.5 or 12.5% and all other answers to 2 decimal places, e.g. 12.55 or 12.55%.)
Net Profit margin
%
Total assets turnover ratio
times
Equity multiplier
Return on assets
%
Return on equity
%
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