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
Current ratio	2x			Fixed assets turnover	7x
Debt-to-capital ratio	21%			Total assets turnover	3x
Times interest earned	3x			Profit margin	4.75%
EBITDA coverage	8x			Return on total assets	14.25%
Inventory turnover	7x			Return on common equity	17.90%
Days sales outstandinga	24days			Return on invested capital	15.70%
aCalculation is based on a 365-day year.

Balance Sheet as of December 31, 2021 (millions of dollars)
Cash and equivalents		$66		Accounts payable		$45
Accounts receivables		62		Other current liabilities		16
Inventories		164		Notes payable		49
Total current assets		$292		Total current liabilities		110
				Long-term debt		25
				Total liabilities		135
Gross fixed assets		201		Common stock		94
Less depreciation		83		Retained earnings		181
Net fixed assets		$118		Total stockholders' equity		$275
Total assets		$410		Total liabilities and equity		$410

Income Statement for Year Ended December 31, 2021 (millions of dollars)
Net sales		$735.00
Cost of goods sold		590.00
Gross profit		$145.00
Selling expenses		79.50
EBITDA		$65.50
Depreciation expense		14.00
Earnings before interest and taxes (EBIT)		$51.50
Interest expense		6.50
Earnings before taxes (EBT)		$45.00
Taxes (25%)		11.25
Net income	$	33.75

1. 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	%	21%
Times interest earned		3x
EBITDA coverage		8x
Inventory turnover		7x
Days sales outstanding	days	24days
Fixed assets turnover		7x
Total assets turnover		3x
Profit margin	%	4.75%
Return on total assets	%	14.25%
Return on common equity	%	17.90%
Return on invested capital	%	15.70%

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

	Firm	Industry
Profit margin	%	4.75%
Total assets turnover		3
Equity multiplier