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The following condensed information was reported by Peabody Toys, Inc., for 2016 and 2015:

	($ in 000s)
	2016			2015
Income statement information
Net sales	$	5,400		$	4,400
Net income		228			128
Balance sheet information
Current assets	$	820		$	770
Property, plant, and equipment (net)		1,280			930
Total assets	$	2,100		$	1,700
Current liabilities	$	560		$	210
Long-term liabilities		770			770
Paid-in capital		600			600
Retained earnings		170			120
Liabilities and shareholders equity	$	2,100		$	1,700

Required: 1. Determine the following components of the DuPont framework for 2016: Profit Margin (%) I Choose Denominator: Choose Numerator: Profit Margin Profit Margin 0 Asset Turnover 1 Choose Denominator: Choose Numerator: Return on Assets Return on assets Equity Multiplier I Choose Denominator: Choose Numerator: = Return on Assets Return on assets Choose Numerator: Return on Shareholders' Equity_(%) I Choose Denominator: Return on Shareholders' Equity Return on shareholders' equity 2. Write an equation that relates these components in calculating ROE. Use the Peabody Toys data to show that the equation is correct. (Round your answers to 2 decimal points.) Profit margin Profit margin H a ssel turnover A Asset turnover Equity multiplier = E quity multiplier : ROE 0.00% ROE 205

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