Bethesda Mining Company reports the following balance sheet information for 2009 and 2010.
BETHESDA MINING COMPANY Balance Sheets as of December 31, 2009 and 2010 | |||||||||||||
2009 | 2010 | 2009 | 2010 | ||||||||||
Assets | Liabilities and Owners’ Equity | ||||||||||||
Current assets | Current liabilities | ||||||||||||
Cash | $ | 65,470 | $ | 82,487 | Accounts payable | $ | 186,922 | $ | 194,611 | ||||
Accounts receivable | 65,281 | 85,639 | Notes payable | 82,020 | 133,588 | ||||||||
Inventory | 116,676 | 181,549 | | | | | | | |||||
| | | | | | Total | $ | 268,942 | $ | 328,199 | |||
Total | $ | 247,427 | $ | 349,675 | | | | | | | |||
| | | | | | Long-term debt | 231,000 | 167,750 | |||||
Owners’ equity | |||||||||||||
Common stock and paid-in surplus | $ | 224,000 | $ | 224,000 | |||||||||
Accumulated retained earnings | 182,232 | 219,704 | |||||||||||
Fixed assets | | | | | | | |||||||
Net plant and equipment | $ | 658,747 | $ | 589,978 | Total | $ | 406,232 | $ | 443,704 | ||||
| | | | | | | | | | | | ||
Total assets | $ | 906,174 | $ | 939,653 | Total liabilities and owners’ equity | $ | 906,174 | $ | 939,653 | ||||
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Suppose that the Bethesda Mining Company had sales of $2,316,873 and net income of $93,381 for the year ending December 31, 2010. |
Required: |
Calculate ROE using the Du Pont identity. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).) |
Profit margin | % | |
Total asset turnover | ||
Equity multiplier | ||
Return on equity | % |
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