The following are the financial statements for

Nederland Consumer Products Company for

the fiscal year ended December 31, 20xx.
a) Calculate all the ratios in liquidity,
efficiency, leverage, profitability raios.
b) Compare all the ratios, for which industry
figures are available below, for Nederland
and compare the firm's ratios with the
industry ratios.
c) Using the DuPont identity, calculate the
return on equity for Nederland, after
calculating the ratios that make up the
DuPont identity.
 Nederland Consumer Products Company
Income Statement for the Fiscal Year
Ended December 31, 20xx
Net Sales 51,407
Cost of product sold 25,076
Gross Profit 26,331
Marketing, research, administrative expense 15,746
Depreciation 758
Operating income (loss) 9,827
Interest Expense 477
Earning (Loss) before incomes taxes 9,350
Income taxes 2,869
Net Earnings (loss) 6,481

Nederland Consumer Products Company

Balance Sheet as of December 31, 20xx
ASSETS
Cash and marketable securities 5,469
ST Investment securities 423
Accounts Receivable 4,062
Inventory 4,400
Deffered income taxes 958
Prepaid expenses and other receivable 1,803
Total Current Assets 17,115
Property, plant, and equipement at cost 25,304
Less: Accumulated Depreciation (11,196)
Net Property, plan, and equipment 14,108
Net goodwill and other intangible assets 23,900
Other noncurrent assets 1,925
TOTAL ASSETS 57,048

LIABILITIES AND EQUITY

Accounts payable 3,617
Accrued and other liabilities 7,689
Taxes payable 2,554
Debt due within one year 8,287
Total Current Liabilities 22,147
LT Debt 12,554
Deffered income taxes 2,261
Other noncurrent liabilities 2,808
TOTAL LIABILITIES 39,770

Convertible Class A preferred stock 1,526

Common Stock 2,141
Retained Earnings 13,611
Treasury Stock -
TOTAL STOCKHOLDERS' EQUITY 17,278
TOTAL LIABILITIES AND EQUITY 57,048

RATIO INDUSTRY AVERAGE

Current Ratio 2.05
Quick Ratio 0.78
Gross Profit Margin 23.90%
Net Profit Margin 12.30%
Debt Ratio 0.23
LT debt to equity 0.98
Interest coverage 5.62
ROA 5.30%
ROE 18.80%