Question

The balance sheet and income statement for Cullumber Supply Company for the fiscal year ended June 30, 2017 is as follows Cullumber Supply Company Income Statement for the Fiscal Year Ended June 30, 2017($ thousands) Net sales Cost of goods sold Selling and administrative expenses Nonrecurring expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) Depreciation Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Taxes (35%) Net income $2,133,900 1,459,400 313,000 27,600 $333,900 112,150 221,750 117,650 $104,100 36,435 $67,665 Cullumber Supply Company Balance Sheet as of June 30, 2017($ thousands) Liabilities and Equity: Assets: Cash and marketable securities Accounts receivable Inventory Other current assets $818,500 103,400 41,300 $963,200 1,149,000 $2,112,200 1,312,500 853,500 $2,166,000 $4,278,200 $395,600 Accounts payable 706,500 Notes payable 1,151,100 Accrued income taxes 42,000 Total current liabilities Total current assets $2,295,200 Long-term debt Total liabilities Common stock Retained earnings Net plant and equipment 1,983,000 Total common equity Total assets $4,278,200 Total liabilities and equity Use the DuPont equation to calculate the return on equity (ROE) In the process, calculate the following ratios: profit margin, EBIT return on assets, return on assets, equity multiplier, and total asset turnover (Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Net profit margin EBIT ROA Return on assets Equity multiplier Total asset turnover ROE

Answer 1