Question

Essentials of corporate finance Thanks!

Some recent financial statements for Smolira Golf, Inc., follow.

SMOLIRA GOLF, INC.
Balance Sheets as of December 31, 2009 and 2010
2009 2010 2009 2010
Assets Liabilities and Owners’ Equity
Current assets Current liabilities
Cash $ 2,881 $ 2,757 Accounts payable $ 2,208 $ 2,710
Accounts receivable 4,712 5,671 Notes payable 1,805 2,226
Inventory 12,698 13,672 Other 101 118

Total $ 20,291 $ 22,100 Total $ 4,114 $ 5,054

Long-term debt $ 14,400 $ 17,160
Owners’ equity
Common stock
and paid-in surplus $ 43,500 $ 43,500
Fixed assets Accumulated retained earnings 15,709 39,915

Net plant and equipment 57,432 83,529 Total $ 59,209 $ 83,415

Total assets $ 77,723 $ 105,629 Total liabilities and owners’ equity $ 77,723 $ 105,629

SMOLIRA GOLF, INC.
2010 Income Statement
Sales $ 189,570
Cost of goods sold 127,303
Depreciation 5,223

EBIT $ 57,044
Interest paid 1,320

Taxable income $ 55,724
Taxes 19,503

Net income $ 36,221

Dividends $ 12,015
Retained earnings 24,206

Required:
Construct the Du Pont identity for Smolira Golf. (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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