Bookmarks Window Help View History 9. An analysis of company performance using DuPont analysis walking down the hall of your office building with a shear of papers in her hand, friend and colleague, Ashley, stepped into your office your and asked the following. Ashley Do you have 10 or 15 minutes that you can spare? You Sure, rve got a to start something new and then be interrupted by the meeting, so meeting in an hour, but I don't want how can I help? Ashley I've been reviewing the company's financial statements and looking for ways improve our performance, in by general, and the company's return on equity, or ROE, in particular Mike, my new team leader, suggested that Istart using a DuPont analysis, and I'd like to run my numbers and condusions by you, to see r I've missed anything. Here are the balanoe sheet and income statement data that Mikel gave me, and here are my notes with my calculations. Could you start by making sure that my numbers are correct? You Give me a minute to look at these financial statements and to remember what I know about the DuPont analysis. Income Statement Data Balance Sheet Data $28,000,000 $1,400,000 Accounts payable $1.680,000 S60,000 Cost of goods sold 14,000,000 2,800,000 Acouals 2,240,000 14,000,000 4,200,000 Notes payable 7,000,000 iabilities 4480,000 8,400,000 EBIT 7,000,000 7,700,000 Interest expense 6,344,800 1,575,000 Net fixed assets 5,600,000 Retained eamings 4,725,000 2,220,680 6,300,000 Net income Total equity $4,124,120 $14,000,000 Total debt and equity $14,000,000 remember correctly, the DuPont equation breaks down our ROE into three component ratios: the the total asset tumover ratio, and the And, according to my understanding of the DuPont equation and its calculation of ROC, the three ratios provide insights