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Refer to the Tables Above

question 5

Multiple Choice

$\begin{array} {c } \text {MARNI COMPANY }\\ \text { Balance Sheet}\\ \text { As of December 31}\\\begin{array}{lrr}\text { ASSETS }\\\text { Cash } & \$ 50,000 \\\text { Accounts receivable } & 100,000 \\\text { Inventory } & 200,000 \\\text { Net plant and equipment } & 650,000\\\text { Total assets }&\$1,000,000\\\\\text { LIABITTES AND STOCKHOLDER.S' EQUTTY }\\\text { Accounts payable } & \$ 100,000 \\\text { Accrued expenses } & 90,000 \\\text { Long-term debt } & 250,000 \\\text { Common stock } & 100,000 \\\text { Paid-in capital } & 50,000 \\\text { Retained earnings } & 410,000\\\text { Total liabilities and stockholders' equity }&\$1,000,000\end{array}\end{array}$

$\begin{array} {c } \text {MARNI COMPANY }\\ \text {Income Statement }\\ \text {For the year ended December 31 }\\\begin{array} { l } \text {Sales (all on credit) }&\$2,000,000\\ \text {Cost of goods sold }&1,750,000\\ \text { Gross profit}&\$250,000\\ \text {Sales and administrative expenses }&30,000\\ \text { Fixed lease expenses}&10,000\\ \text {Depreciation }&60,000\\ \text { Operating profit}&\$150,000\\ \text {Interest expense }&25,000\\ \text { Profit before taxes}&\$125,000\\ \text { Taxes (40 \%) }&50,000\\ \text {Net income }&\$75,000\\\end{array}\end{array}$

Refer to the tables above. Using the DuPont method, the return on equity for Marni is approximately ________.

Definitions:

Data Mining

The process of analyzing large sets of data to discover patterns, trends, and relationships that can inform decision making.

Meaningful Trends

Patterns or shifts in consumer behavior, market dynamics, or societal attitudes that have significant implications for businesses and society.

Large Amount

A significantly high quantity or volume of something, often relative to what is typical or expected.

Recency-Frequency-Monetary Analysis

A marketing analysis tool used to identify a company's best customers by examining how recently and how often they purchased, as well as how much they spent.