Balance Sheet Data Income Statement Data Sales Cash $1,300,000 Accounts receivable 2,600,000 Inventory 3,900,000 Current assets 7,800,000 Accounts payable $1,560,000 Accruals 520,000 Notes payable 2,080,000 Current liabilities 4,160,000 Long-term debt 4,420,000 Total liabilities 8,580,000 Common stock 1,755,000 Retained earnings 5,265,000 Total equity 7,020,000 Total debt and equity $15,600,000 $26,000,000 Cost of goods sold 15,600,000 Gross profit 10,400,000 Operating expenses 6,500,000 EBIT 3,900,000 Interest expense 780,000 EBT 3,120,000 Taxes 780,000 Net income $2,340,000 Net fixed assets 7,800,000 Total assets $15,600,000 , the total asset turnover If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the net profit margin 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 C, effectiveness in using the company's assets, and control over its expenses 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 40.00 1.67 Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) 12.00 15.00 Financial ratios Equity multiplier 45.59 1.82