Balance Sheet Data $700,000 Accounts payable 1,400,000 Accruals 2,100,000 Notes payable 4,200,000 Income Statement Data Cash Accounts receivable Inventory $840,000 Sales 280,000Cost of goods sold 1,120,000 Gross profit 2,240,000 Operating expenses 2,380,000 EBIT 4,620,000 Interest expense $14,000,000 7,000,000 7,000,000 3,500,000 3,500,000 420,000 3,080,000 1,078,000 $2,002,000 Current assets Current liabilities Long-term debt Total liabilities Common stock 945,000EBT 2,835,000 Taxes 3,780,000 Net income Net fixed assets 4,200,000 Retained earnings Total equity Total debt and equity Total assets $8,400,000 $8,400,000 If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the net profit margin , the total asset turnover ratio, and the equity multiplier . And, according to my understanding of the DuPont equation and its calculation of ROE, the three ratios provide insights into the company's use of debt versus equity financing effectiveness in using the company's assets, and control over its expenses