Balance Sheet Data Income Statement Data $1,300,000 Accounts payable $1,560,000 Sales 2,600,000 $26,000,000 13,000,000 Accruals 520,000 Cost of goods sold Cash Accounts receivable Inventory Current assets Notes payable 2,080,000 Gross profit 3,900,000 7,800,000 13,000,000 6,500,000 Qurrent liabilities 4,160,000 Operating expenses 6,760,000 EBIT Long-term debt Total liabilities 6,500,000 1,060,800 10,920,000 Interest expense Common stock EBT Net fixed assets 7,800,000 Taxes Retained earnings Total equity Total debt and equity 1,170,000 3,510,000 4,680,000 $15,600,000 5,439,200 1,359,800 $4,079,400 Net income Total assets $15,600,000 If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the turnover ratio, and the the total asset 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. Canis Major Veterinary Supplies Inc. DuPont Analysis Ratios Value Correct/Incorrect Ratios Value Correct/Incorrect Asset management ratio Total assets turnover 50.00 1.67 Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) 20.92 26.15 Financial ratios 62.45 Equity multiplier 1.43 Ratios Calculation Value Numerator Denominator = Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Retum on equity (%) Asset management ratio Total assets turnover Financial ratios Equity multiplier ULT 11 Check all that apply. Increase the firm's bottom-line profitability for the same volume of sales, which will increase the company's net profit margin. Decrease the amount of debt financing used by the company, which will decrease the total assets turnover ratio. Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin. Use more debt financing in its capital structure and increase the equity multiplier