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 $2 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			Fixed assets turnover	6
Debt-to-capital ratio	14	%		Total assets turnover	3
Times interest earned	5			Profit margin	3.50	%
EBITDA coverage	7			Return on total assets	10.50	%
Inventory turnover	9			Return on common equity	14.90	%
Days sales outstandinga	20	days		Return on invested capital	13.60	%
aCalculation is based on a 365-day year.

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

Balance Sheet as of December 31, 2021 (millions of dollars)
Cash and equivalents	$	97		Accounts payable	$	58
Accounts receivables		63		Other current liabilities		15
Inventories		160		Notes payable		39
Total current assets	$	320		Total current liabilities	$	112
				Long-term debt		19
				Total liabilities	$	131
Gross fixed assets		247		Common stock		116
Less depreciation		82		Retained earnings		238
Net fixed assets	$	165		Total stockholders' equity	$	354
Total assets	$	485		Total liabilities and equity	$	485

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

Net sales $ 865.00 Cost of goods sold 720.00 Gross profit $ 145.00 Selling expenses 77.50 EBITDA $ 67.50 Depreciation expense 14.00 Earnings before interest and taxes (EBIT) $ 53.50 Interest expense 7.50 Earnings before taxes (EBT) $ 46.00 Taxes (25%) 11.50 Net income $ 34.50

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

	Firm	Industry Average
Current ratio		2X
Debt to total capital	%	14%
Times interest earned		5x
EBITDA coverage		7x
Inventory turnover		9x
Days sales outstanding	days	20 days
Fixed assets turnover		6x
Total assets turnover		3x
Profit margin	%	3.50%
Return on total assets	%	10.50%
Return on common equity	%	14.90%
Return on invested capital	%	13.60%

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

	Firm	Industry
Profit margin		3.50%
Total assets turnover		3
Equity multiplier