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 5x

debt-to-capital ratio 18% Total assets turnover 3x

Times interest earned 5x Profit margin 4.25%

EBITDA coverage 8x Return on total assets 12.75%

Inventory turnover 10x Return on common equity 17.50%

Days sales outstanding (*) 30 days Return on invested capital 15.40%

*calculation is based on a 365 day year

Balance Sheet as of December 31, 2019 (Millions of Dollars)

Cash and equivalents	$80	Accounts Payable	$50
Accounts receivables	85	Other current liabilities	$10
Inventories	155	Notes payable	55
Total current assets	320	Total current liabilities	115
Gross fixed assets	265	Long-term debt	25
Less depreciation	85	Total liabilities	140
Net fixed assets	180	Common stock	125
Total assets	500	Retained earnings	235
		Total stockholders' equity	360
		Total liabilities and equity	500

Income Statement for Year Ended Dec, 31, 2019 (Millions of Dollars)

Net sales $805.00

Cost of goods sold 640.00

Gross profit $165.00

Selling expenses 88.50

EBITDA $76.50

Depreciation expense 16.00

Earnings before interest and taxes (EBIT) $60.50

Interest expense 7.50

Earnings before taxes (EBT) $53.00

Taxes (25%)13.25

Net income$39.75

Firm	Industry Average
Current ratio		2
Debt to total capital	%	18	%
Times interest earned		5
EBITDA coverage		8
Inventory turnover		10
Days sales outstanding	days	30	days
Fixed assets turnover		5
Total assets turnover		3
Profit margin	%	4.25	%
Return on total assets	%	12.75	%
Return on common equity	%	17.50	%
Return on invested capital	%	15.40	%

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

Firm	Industry
Profit margin	%	4.25%
Total assets turnover		3
Equity multiplier