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 $2\backslash$times Fixed assets turnover $6\backslash$times

Debt$-$to$-$capital ratio $18\%$ Total assets turnover $3\backslash$times

Times interest earned $5\backslash$times Profit margin $2\mathrm{.}75\%$

EBITDA coverage $6\backslash$times Return on total assets $8\mathrm{.}25\%$

Inventory turnover $7\backslash$times Return on common equity $14\mathrm{.}40\%$

Days sales outstandinga $22$ days Return on invested capital $11\mathrm{.}80\%$

aCalculation is based on a $365-$day year.

Balance Sheet as of December $31,2021($millions of dollars$)$

Cash and equivalents $ $74$ Accounts payable $ $54$

Accounts receivables $64$ Other current liabilities $25$

Inventories $196$ Notes payable $44$

Total current assets $ $334$ Total current liabilities $ $123$

Long$-$term debt $29$

Total liabilities $ $152$

Gross fixed assets $225$ Common stock $127$

Less depreciation $69$ Retained earnings $211$

Net fixed assets $ $156$ Total stockholders' equity $ $338$

Total assets $ $490$ Total liabilities and equity $ $490$

Income Statement for Year Ended December $31,2021($millions of dollars$)$

Net sales $ $835\mathrm{.}00$

Cost of goods sold $720\mathrm{.}00$

Gross profit $ $115\mathrm{.}00$

Selling expenses $62\mathrm{.}50$

EBITDA $ $52\mathrm{.}50$

Depreciation expense $10\mathrm{.}00$

Earnings before interest and taxes $($EBIT$)$ $ $42\mathrm{.}50$

Interest expense $4\mathrm{.}50$

Earnings before taxes $($EBT$)$ $ $38\mathrm{.}00$

Taxes $(25\%)9\mathrm{.}50$

Net income $ $28\mathrm{.}50$

Calculate the following ratios. Do not round intermediate calculations. Round your answers to two decimal places.

Firm Industry Average

Current ratio

$2\mathrm{.}71$

$\backslash$times $2\backslash$times

Debt to total capital

$7\mathrm{.}9$

$\%18\%$

Times interest earned

$9\mathrm{.}44$

$\backslash$times $5\backslash$times

EBITDA coverage

$7$

$\backslash$times $6\backslash$times

Inventory turnover

$22$

$\backslash$times $7\backslash$times

Days sales outstanding

days $22$ days

Fixed assets turnover

$\backslash$times $6\backslash$times

Total assets turnover

$\backslash$times $3\backslash$times

Profit margin

$\%2\mathrm{.}75\%$

Return on total assets

$\%8\mathrm{.}25\%$

Return on common equity

$\%14\mathrm{.}40\%$

Return on invested capital

$\%11\mathrm{.}80\%$

Construct a DuPont equation, and the industry. Do not round intermediate calculations. Round your answers to two decimal places.

Firm Industry

Profit margin

$\%2\mathrm{.}75\%$

Total assets turnover

$\backslash$times $3\backslash$times

Equity multiplier

$\backslash$times

$\backslash$times