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 $1 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 6 x 3 x 3.75 % 00 w 11.25 % 16.10% Current ratio 2x Fixed assets turnover Debt-to-capital ratio 23% Total assets turnover Times interest earned Profit margin EBITDA coverage Return on total assets Inventory turnover Return on common equity Days sales 22 days Return on invested outstandinga capital Calculation is based on a 365-day year. Balance Sheet as of December 31, 2019 (Millions of Dollars) 0 14.90 % $ 108 $ 54 70 Cash and equivalents Accounts receivables Inventories Total current assets 211 Accounts payable Other current liabilities Notes payable Total current liabilities Long-term debt Total liabilities $ 389 $ 151 38 $ 189 275 151 124 200 Gross fixed assets Less depreciation Net fixed assets Total assets Common stock Retained earnings Total stockholders' equity Total liabilities and equity $ 151 $ 351 $ 540 $ 540 Income Statement for Year Ended December 31, 2019 (Millions of Dollars) Net sales $ 905.00 Cost of goods sold 750.00 Gross profit $ 155.00 Selling expenses 83.50 EBITDA $ 71.50 Depreciation expense 14.00 Earnings before interest and taxes (EBIT) $ 57.50 Interest expense 7.50 Earnings before taxes (EBT) $ 50.00 Taxes (25%) 12.50 Net income $ 37.50 a. Calculate the following ratios. Do not round intermediate calculations. Round your answers to two decimal places. Firm Industry Average Current ratio 2x * Debt to total capital 23 % Times interest earned * x EBITDA coverage * x Inventory turnover * x Days sales outstanding 22 days Fixed assets turnover * 6x Total assets turnover * x Profit margin 3.75 % Return on total assets 11.25% Return on common equity 16.10% zo be Return on invested capital 14.90 % b. Construct a DuPont equation for the firm and the industry. Do not round intermediate calculations. Round your answers to two decimal places. Firm Industry Profit margin 3.75% Total assets turnover 3x Equity multiplier