Bethesda Mining Company reports the following balance sheet information for 2015 and 2016.
BETHESDA MINING COMPANY
Balance Sheets as of December 31, 2015 and 2016 |
|
2015 |
|
2016 |
|
|
2015 |
|
2016 |
|
| 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 |
|
|
| Fixed assets |
|
|
|
|
|
|
|
|
Accumulated retained earnings |
|
182,232 |
|
|
|
219,704 |
|
|
| 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 |
|
|
|
Suppose that the Bethesda Mining Company had sales of $2,316,873 and net income of $93,381 for the year ending December 31, 2016.
Calculate ROE using the DuPont identity.
(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 |
|
4.03 % |
| Total asset turnover |
|
times |
| Equity multiplier |
|
times |
| Return on equity |
|
% |