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

please answer the whole question

MADISON: Do you have 10 or 15 minutes that you can spare? YOU: Sure, I've got a meeting in an hour, but I don't want to start something new and then be interrupted by the meeting, so how can I help? MADISON: 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. Xavier, my new team leader, suggested that I start by using a DuPont analysis, and I'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 Xavier 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. Balance Sheet Data Cash $800,000 Income Statement Data Sales $16,000,000 $960,000 Accounts payable Accruals 1,600,000 320,000 8,000,000 Accounts receivable Inventory Current assets 2,400,000 4,800,000 1,280,000 2,560,000 Cost of goods sold Gross profit Operating expenses EBIT Notes payable Current liabilities Long-term debt Total liabilities 8,000,000 4,000,000 2,240,000 4,000,000 4,800,000 422,400 Interest expense EBT 800,000 3,577,600 Net fixed assets 3,200,000 2,400,000 Taxes 1,252,160 Common stock Retained earnings Total equity Total debt and equity Net income 3,200,000 $8,000,000 $2,325,440 Total assets $8,000,000 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'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. Cepeus Manufacturing Inc. DuPont Analysis Value Value Correct/Incorrect Ratios Profitability ratios Correct/Incorrect Ratios Asset management ratio Total assets turnover 2.00 50.00 22.36 Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) 29.07 Financial ratios 97.09 Equity multiplier 1.67 MADISON: 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: Do not round Intermediate calculations and round your final answers up to two decimals. Cepeus Manufacturing Inc. DuPont Analysis Value Calculation Numerator Denominator Ratios Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) Asset management ratio Total assets turnover Financial ratios Equity multiplier MADISON: I see what I did wrong in my computations. Thanks for reviewing these calculations with me. You saved me from a lot of embarrassment! Xavier would have been very disappointed in me if I had showed him my original work. So, now let's switch topics and identify general strategies that could be used to positively affect Cepeus's ROE. YOU: OK, so given your knowledge of the component ratios used in the DuPont equation, which of the following strategies should improve the company's ROE? Value Calculation Numerator Denominator Ratios Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) Asset management ratio Total assets turnover Financial ratios Equity multiplier MADISON: I see what I did wrong in my computations. Thanks for reviewing these calculations with me. You saved me from a lot of embarrassment! Xavier would have been very disappointed in me if I had showed him my original work. So, now let's switch topics and identify general strategies that could be used to positively affect Cepeus's ROE. YOU: OK, so given your knowledge of the component ratios used in the DuPont equation, which of the following strategies should improve the company's ROE? Check all that apply. Increase the efficiency of its assets so that it generates more sales with each dollar of asset investment and increases the company's total assets turnover. Decrease the amount of debt financing used by the company, which will decrease the total assets turnover ratio. Increase the cost and amount of assets necessary to generate each dollar of sales because it will increase the company's total assets turnover. Use more equity financing in its capital structure, which will increase the equity multiplier. MADISON: I think I understand now. Thanks for taking the time to go over this with me, and let me know when I can return the favor. Grade it Now