The following are the consolidated financial statements for…
QuestionAnswered step-by-stepThe following are the consolidated financial statements for…The following are the consolidated financial statements for EastNorth Manufacturing. Use DuPont analysis on the industry financial statements to determine why industry return of equity changed from year to year. ( You don’t have to compute all financial ratio- Only for those that need DuPont relationship)Compare the reason for the changes in return on equity for Eastnorth Manufacturing and the industry Following are the consolidated financial statements for Eastnorth Manufacturing’s industry. Use DuPont analysis on the industry financial statements to determine why industry return on equity (ROE) changed from year to year. (Note you do not have to compute all financial ratios for the industry — only those needed for the DuPont relationship!) Balance Sheet Industry December 31 2020 2019 2018 ASSETS Cash $ 30,000 $ 25,000 $ 20,000 Accts receivable 110,000 90,000 60,000 Inventory 100,000 80,000 80,000 Total current assets 240,000 195,000 160,000 200,000 Gross plant & equipment 250,000 220,000 200,000 less: accum depreciation (100,000) (65,000) (50,000) Net plant & equipment 150,000 155,000 150,000 Land 50,000 50,000 50,000 Total fixed assets 200,000 205,000 200,000 Total assets $ 440,000 $ 400,000 $ 360,000 LIABILITIES & EQUITY Accts payable $ 58,000 $ 50,000 $ 45,000 Notes payable 50,000 50,000 50,000 Accrued liabilities – – – Total current liabilities 108,000 100,000 95,000 Long term debt 32,000 20,000 15,000 Total liabilities 140,000 120,000 110,000 Total stockholders’ equity 300,000 280,000 250,000 Total liabilities & equity $ 440,000 $ 400,000 $ 360,000 Income Statement Years ended December 31 2020 2019 2018 Net revenues or sales $ 1,100,000 $ 1,000,000 $ 900,000 Cost of goods sold 700,000 650,000 600,000 Gross profit 400,000 350,000 300,000 Operating expenses Expenses general & admin 143,000 135,000 130,000 Marketing 88,000 80,000 70,000 Depreciation 44,000 40,000 36,000 Operating income 125,000 95,000 64,000 Interest 15,000 15,000 14,000 Earnings before taxes 110,000 80,000 50,000 Income taxes 44,000 32,000 20,000 Net income $ 66,000 $ 48,000 $ 30,000 AccountingBusinessFinancial AccountingFIN 3310Share Question
