A sheaf of papers in her hand, your friend and colleague, Chloe, steps into your office and asked the following.

CHLOE: Do you have $10$ or $15$ minutes that you can spare?

can I help?

CHLOE: I've been reviewing the company's financial statements and looking for ways to improve our performance, in general, and

the company's return on equity, or ROE, in particular. Eric, my new team leader, suggested that I start by using a DuPont

analysis, and I$\text{'}$d like to run my numbers and conclusions by you to see whether I've missed anything.

Here are the balance sheet and income statement data that Eric gave me$,$ and here are my notes with my calculations. Could

you start by making sure that my numbers are correct?

YOU: Give me a minute to look at these financial statements and to remember what I know about the DuPont analysis. If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the

$,$ the total asset

turnover ratio, and the

And, according to my understanding of the DuPont equation and its calculation of ROE, the three ratios provide insights into the company's

$=,$ effectiveness in using the company's assets, and

Now, let's see your notes with your ratios, and then we can talk about possible strategies that will improve the ratios. I$\text{'}$m going to check the box to

the side of your calculated value if your calculation is correct and leave it unchecked if your calculation is incorrect.

Hydra Cosmetics Inc. DuPont Analysis

CHLOE: OK$,$ it looks like I've got a couple of incorrect values, so show me your calculations, and then we can talk strategies for

improvement.

YOU: I've just made rough calculations, so let me complete this table by inputting the components of each ratio and its value: