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	17	%		Total assets turnover	3
Times interest earned	5			Profit margin	3.50	%
EBITDA coverage	8			Return on total assets	10.50	%
Inventory turnover	7			Return on common equity	16.10	%
Days sales outstandinga	25	days		Return on invested capital	14.30	%
aCalculation is based on a 365-day year.

Balance Sheet as of December 31, 2021 (millions of dollars)
Cash and equivalents	$	85		Accounts payable	$	50
Accounts receivables		75		Other current liabilities		20
Inventories		195		Notes payable		55
Total current assets	$	355		Total current liabilities	$	125
				Long-term debt		20
				Total liabilities	$	145
Gross fixed assets		245		Common stock		135
Less depreciation		100		Retained earnings		220
Net fixed assets	$	145		Total stockholders' equity	$	355
Total assets	$	500		Total liabilities and equity	$	500

Income Statement for Year Ended December 31, 2021 (millions of dollars)
Net sales	$	865.00
Cost of goods sold		710.00
Gross profit	$	155.00
Selling expenses		84.50
EBITDA	$	70.50
Depreciation expense		14.00
Earnings before interest and taxes (EBIT)	$	56.50
Interest expense		6.50
Earnings before taxes (EBT)	$	50.00
Taxes (25%)		12.50
Net income	$	37.50

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

	Firm	Industry Average
Current ratio		2
Debt to total capital	%	17	%
Times interest earned		5
EBITDA coverage		8
Inventory turnover		7
Days sales outstanding	days	25	days
Fixed assets turnover		6
Total assets turnover		3
Profit margin	%	3.50	%
Return on total assets	%	10.50	%
Return on common equity	%	16.10	%
Return on invested capital	%	14.30	%

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	x	3
Equity multiplier	x	x