Activity Information A firm has been experiencing low profitability in recent years. Perform an analysis of the firm's position using the DuPont equation. The firm has no lease payments but has a $2 million sinking fund financial payment on its debt. The most recent industry average ratios and the firm's financial statements are as follows: Industry Average Ratios Current ratio 4.06x Fixed assets turnover 8.09x Debt-to-capital ratio 19.44% Total assets turnover 3.62x Times interest earned 13.58x Profit margin 10.48% EBITDA coverage 18.66x Return on total assets 40.24% Inventory turnover 9.76x Return on common equity 56.40% Days sales outstanding 21.05 days Return on invested capital 47.69% Calculation is based on a 365-day year. Balance sheet as of December 31, 2016 (Millions of Dollars) Cash and equivalents $71 Accounts payable $34 Accounts receivables Other current liabilities 146 Notes payable 41 Total current assets $273 Total current liabilities $86 Long-term debt 23 Total liabilities $109 Gross fixed assets 188 Common stock Retained earninas