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A company's assets consist of $254,478 of cash, $579,445 of accounts receivable, $487,009 of inventory, and $2,478,554 of plant and equipment. Its liabilities consist of

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A company's assets consist of $254,478 of cash, $579,445 of accounts receivable, $487,009 of inventory, and $2,478,554 of plant and equipment. Its liabilities consist of $332,887 of accounts payable, $139,877 of accruals, and $1,275,000 of long- term debt. The company's annual sales are $4,765,889, it paid $165,750 of interest, its earnings before taxes are $453,816, and its net income is $272,289. In its industry, the average profit margin is 5.71%, the average total asset turnover is 0.90, and the average equity multiplier is 1.85. Using DuPont analysis, determine if the company's return on equity is above or below the industry average and what factor causes the difference? 1) Below, total asset turnover 2) Above, profit margin 3) Above, total asset turnover 4) Below, profit margin 5) Below, equity multiplier

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