a) Calculate the ratios you think would be useful in the analysis.

b). Construct a DuPont equation, and compare the company's ratios to the industry average ratios.

c). Do the balance sheet accounts or the income statements figures seem to beprimarily responsible for the low profits?

d). Which specific accounts seem to be most out of line relative to other firm in the industry?

e). In the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?

DuPont Analysis