a. Calculate the firm's 2022 financial ratios, and then complete the ratio table.

b. For additional insight develop a common-size analysis for the Income Statement and percentage change analysis for the Balance Sheet.

c. Use the DuPont model to fully analyze why ROE changed over the three-year period and is different than the industry average. Explain. (note: may need to algebraically manipulate to get values for all years)

Retained earnings	986,900	1,120,000
Total shareholder’s equity	$1,315,900	$1,449,000
Total liabilities and shareholder’s equity	$ 3,000,000	$ 3,500,000
Historical Ratios
Millions Manufacturing Company
Ratio	Actual 2020	Actual 2021	Actual 2022	Industry average 2022
Current ratio	1.7	1.8		1.5
Quick ratio	0.8	0.9		1.2
Inventory turnover	5.2	5.0		10.3
Days sales outstanding	50 days	55 days		46 days
Total asset turnover	1.6	1.8		2
Total debt to assets	26.9%	27.7%		27.0%
Times-intrest-earned	2.2	1.9		2.5
Net profit margin	1.3%	1.5%		1.2%
Return on total assets	2.1%	2.7%		2.4%
Return on equity	4.7%	6.2%		4.0%