24. Problem 4.24 (DUPONT Analysis) eBook A firm has been experiencing low profitability in recent years. Perform an analysis of the firm's financial position using the DuPont equation. The firm has no lease payments but has a $3 million sinking fund payment on its debt. The most recent industry average ratios and the firm's financial statements are as follows: Industry Average Ratios Current ratio 2x Fixed assets turnover 6x Debt-to-capital ratio 17% Total assets tumover 3x Times interest earned 7x Profit margin. 2.25% EBITDA coverage 7x Return on total assets 6.75% Inventory turnover 9x Return on common equity 14.00% Days sales 18days Return on invested 11.60% outstanding capital *Calculation is based on a 365-day year. Balance Sheet as of December 31, 2021 (millions of dollars) Cash and equivalents $ 70 Accounts payable $ 48 Accounts receivables 57 Other current liabilities 26 Inventories 148 Notes payable 35 Total current assets $275 Total current liabilities $109 Long-term debt 26 Total liabilities $135 Gross fixed assets 231 Common stock 117 Less depreciation 71 Retained earnings 183 Net fixed assets $160 Total stockholders' equity $300 Total assets $435 Total liabilities and equity $435 Income Statement for Year Ended December 31, 2021 (millions of Net sales Cost of goods sold dollars) $ 825.00 720.00 Gross profit $ 105.00 Selling expenses 58.50 EBITDA S 46.50 Depreciation expense 10.00 Earnings before interest and taxes (EBIT) S 36.50 Interest expense 3.50 Earnings before taxes (EBT) S 33.00 Taxes (25%) 8.25 Net income S 24.75 a. Calculate the following ratios. Do not round intermediate calculations. Round your answers to two decimal places. Current ratio Debt to total capital Times interest earned EBITDA coverage Firm % Industry Average 2x 17% 7x 7x