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 3.24x Fixed assets turnover 7.56x Debt-to-capital ratio 19.22% Total assets turnover 3.62x Times interest earned 7.30x Profit margin 4.09% EBITDA coverage 9.59x Return on total assets 13.63% Inventory turnover 10.79x Return on common equity 21.57% Days sales outstandinga 25.45 days Return on invested capital 20.4% aCalculation is based on a 365-day year. Balance Sheet as of December 31, 2016 (Millions of Dollars) Cash and equivalents $37 Accounts payable $28 Accounts receivables 39 Other current liabilities 9 Inventories 81 Notes payable 28 Total current assets $157 Total current liabilities $65 Long-term debt 9 Total liabilities $74 Gross fixed assets 115 Common stock 58 Less depreciation 42 Retained earnings 98 Net fixed assets $73 Total stockholders' equity $156 Total assets $230 Total liabilities and equity $230 Income Statement for Year Ended December 31, 2016 (Millions of Dollars) Net sales $460.0 Cost of goods sold 363.4 Gross profit $96.6 Selling expenses 50.6 EBITDA $46.0 Depreciation expense 7.4 Earnings before interest and taxes (EBIT) $38.6 Interest expense 3.7 Earnings before taxes (EBT) $34.9 Taxes (40%) 14.0 Net income $20.9 Calculate the following ratios. Do not round intermediate steps. Round your answers to two decimal places. Firm Industry Average Current ratio x 3.24x Debt to total capital % 19.22% Times interest earned x 7.30x EBITDA coverage x 9.59x Inventory turnover x 10.79x Days sales outstanding days 25.45days Fixed assets turnover x 7.56x Total assets turnover x 3.62x Profit margin % 4.09% Return on total assets % 13.63% Return on common equity % 21.57% Return on invested capital % 20.40% Construct a DuPont equation for the firm and the industry. Do not round intermediate steps. Round your answers to two decimal places. Firm Industry Profit margin % 4.09% Total assets turnover x 3.62x Equity multiplier x x