Using the income statement and balance sheet for the Jacobson and Sons Company, compute the three components of return on equity profitability, efficiency, and leverage based on the DuPont framework, for the year 2003.
Jacobson and Sons Co.
Income Statement
For the Year Ended December 31, 2003
|
Revenues . . |
$265,000 |
|
|
Expenses: |
||
|
Supplies expense. |
$138,600 |
|
|
Salaries expense |
$26,700 |
|
|
Utilities expense. |
6,500 |
|
|
Rent expense |
17,100 |
|
|
Other expenses |
8,700 |
197,600 |
|
Net income . |
$67,400 |
|
Jacobson and Sons Co.
Balance Sheet
December 31, 2003
|
Assets |
Liabilities and Owners Equity |
||
|
Cash. |
$38,900 |
Accounts payable |
$17,100 |
|
Accounts receivable |
31,000 |
Notes payable |
17,200 |
|
Supplies. |
46,300 |
Capital stock. |
30,000 |
|
Land. |
25,000 |
Retained earnings . |
173,600 |
|
Buildings |
96,700 |
Total liabilities |
|
|
Total assets. |
$237,900 |
and owners equity |
$237,900 |