The income statement and balance sheet for the Rollins Company are provided below. Using the DuPont framework, compute the profit margin, asset turnover, assets to equity ratio, and resulting return on equity for the year 2003.
|
Revenue from services |
151,920 |
|
|
Operating expenses: |
||
|
Insurance expense |
$5,480 |
|
|
Rent expense . . |
500 |
|
|
Office supplies expense |
2,960 |
|
|
Salaries expense |
55,000 |
63,940 |
|
Net income |
87,980 |
|
|
Assets |
Liabilities and Owners Equity |
||
|
Cash |
$22,000 |
Accounts payable |
$54,800 |
|
Accounts receivable |
40,000 |
Capital stock. |
50,000 |
|
Notes receivable. |
12,800 |
Retained earnings |
150,000 |
|
Machinery |
180,000 |
Total liabilities |
|
|
Total assets. |
$254,800 |
and owners equity |
$254,800 |