8. DuPont Analysis for Financial Performance

Evaluate the financial performance of ABC Enterprises using DuPont analysis for 2023. The financial data is as follows:

• Net Income: $1,200,000
• Sales Revenue: $8,000,000
• Total Assets: $10,000,000
• Shareholders' Equity: $4,000,000

Requirements:

1. Calculate the Net Profit Margin.
2. Determine the Asset Turnover Ratio.
3. Compute the Equity Multiplier.
4. Calculate the Return on Equity (ROE) using the DuPont formula.
5. Analyze the components driving the company's ROE.