Balance Sheet Data Income Statement Data Cash $800,000 Accounts payable $960,000 Sales $16,000,000 Accounts receivable 1,600,000 Accruals 320,000 Cost of goods sold 9,600,000 Inventory 2,400,000 Notes payable 1,280,000 Gross profit 6,400,000 Current assets 4,800,000 Current liabilities 2,560,000 Operating expenses 4,000,000 Long-term debt 2,720,000 EBIT 2,400,000 Total liabilities 5,280,000 Interest expense 480,000 Common stock 1,080,000 EBT 1,920,000 Net fixed assets 4,800,000 Retained earnings 3,240,000 Taxes 672,000 Total equity 4,320,000 Net income $1,248,000 Total assets $9,600,000 Total debt and equity $9,600,000 Cepeus Manufacturing Inc. DuPont Analysis Ratios Value Correct/Incorrect Ratios Value Correct/Incorrect Profitability ratios Asset management ratio Gross profit margin (%) 40.00 Total assets turnover 1.67 12.00 Operating profit margin (%) Net profit margin (%) Return on equity (%) 13.00 Financial ratios 39.51 Equity multiplier 1.82 JASON: 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 Ratios Calculation Value Profitability ratios Numerator Denominator Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) WO Asset management ratio Total assets turnover Financial ratios Equity multiplier JASON: I see what I did wrong in my computations. Thanks for reviewing these calculations with me. You saved me from a lot of embarrassment! Anja would have been very disappointed in me if I had showed her 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 cost and amount of assets necessary to generate each dollar of sales because it will increase the company's total assets turnover. O Decrease the company's use of debt capital because it will decrease the equity multiplier. Use more debt financing in its capital structure and increase the equity multiplier. 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