Data for TSM Inc. and its industry averages area as follows. Assume tax rate =35% : ( 21 points in total) a. Calculate the indicated ratios for TSM (show your calculation, don't just show the final answers) b. Based on your findings in part (a), what are TSM's strengths and weaknesses in comparing to the industry? c. Construct the Du-Pont equation for both TSM aqd the industry. What is the major reason TSM outperforms (or underperforms) the industry average in ROE? \begin{tabular}{|l|r|l|r|} \hline Balance Sheet (million \$) & & Income Statement (Million \$) & \\ \hline Cash \& Securities & 7,800 & Net sales & 82,000 \\ \hline Accounts receivable & 13,000 & Operating costs except depreciation & 68,500 \\ \hline Inventories & 19,500 & Depreciation & 3,000 \\ \hline Total current assets & 40,300 & Earrngs before interest and taxes (EBIT) & 10,500 \\ \hline Net plant \& equipment & 24,700 & Less interest & 2,600 \\ \hline Total assets & 65,000 & Earnings before taxes (EBT) & 7,900 \\ \hline & & Taxes & 2,765 \\ \hline Uabilities \& Equity & & Net Income & 5,135 \\ \hline Accounts payable & 9,750 & & \\ \hline Notes payable & 13,000 & & \\ \hline Accruals & 5,200 & & \\ \hline Total current liabilities & 27,950 & & \\ \hline Long term debt & 17,550 & & \\ \hline Common stock & 7,800 & & \\ \hline Retained earnings & 11,700 & & \\ \hline Total liabilities and equity & 65,000 & & \\ \hline \end{tabular} Ratios TSM Industry Average Current Ratio 1.56 Quick Ratio 0.85 Days sales outstanding 62 days Inventory turnover 3.8 Total assets turnover 2,0 Profit margin 3% Time interest earned ratio 5.2 Total debt/total invested capital 67.3% ROA 6.0% ROE 16.8% ROIC 11.2%