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 3 x Fixed assets turnover 7 x Debt-to-capital ratio 17% Total assets turnover 3 x Times interest earned 3 x Profit margin 3.25% EBITDA coverage 6 x Return on total assets 9.75% Inventory turnover 7x Return on common equity 14.90% Days sales 27 days outstanding Return on invested capital 13.70% aCalculation is based on a 365-day year. Balance Sheet as of December 31, 2021 (millions of dollars) Cash and equivalents $ 71 Accounts payable $ 40 Accounts receivables 76 Other current liabilities 18 Inventories 169 Notes payable 36 Total current assets $316 Total current liabilities $ 94 Long-term debt 31 Total liabilities $ 125 Gross fixed assets 209 Common stock 102 Less depreciation 80 Retained earnings 218 Net fixed assets $ 129 Total stockholders' equity $ 320 Total assets $445 Total liabilities and equity $445 Income Statement for Year Ended December 31, 2021 (millions of dollars) Net sales Cost of goods sold $ 775.00 650.00 Gross profit Selling expenses EBITDA Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Taxes (25%) $ 125.00 67.50 $ 57.50 12.00 $ 45.50 6.50 $ 39.00 9.75 $ 29.25 Net income a. Calculate the following ratios. Do not round intermediate calculations. Round your answers to two decimal places. Current ratio Debt to total capital Times interest earned Firm % EBITDA coverage Inventory turnover Days sales outstanding days Fixed assets turnover Total assets turnover Profit margin Return on total assets Return on common equity Industry Average 3 x 17% 3 x 6 x 7 x 27 days 7 x 3 x % 3.25% % 9.75% % % 14.90% 13.70% Return on invested capital b. Construct a DuPont equation, and the industry. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin Total assets turnover Firm % Industry 3.25% 3x b. Construct a DuPont equation, and the industry. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin Total assets turnover Equity multiplier Firm % Industry 3.25% 3x x c. Do the balance sheet accounts or the income statement figures seem to be primarily responsible for the low profits