DuPont Analysis

Please calculate the bottom two charts.

A firm has been experiencing low profitability in recent years. Perform an analysis of the firm's financial position using the DuPont equation. The firm has no lease payments, but has a $1 million sinking fund payment on its debt. The most recent industry average ratios and the firm's financial statements are as follows:

	Industry Average Ratios
Current ratio	3.60x		Fixed assets turnover	5.13x
Debt/total assets	14.42%		Total assets turnover	3.08x
Times interest earned	12.76x		Profit margin	6.63%
EBITDA coverage	11.52x		Return on total assets	20.14%
Inventory turnover	10.74x		Return on common equity	27.71%
Days sales outstandinga	21.19days		Return on invested capital	26.05%

^aCalculation is based on a 365-day year.

Balance Sheet as of December 31, 2014 (Millions of Dollars)
Cash and equivalents	$70		Accounts payable	$47
Accounts receivables	47		Other current liabilities	16
Inventories	121		Notes payable	31
Total current assets	$238		Total current liabilities	$94
			Long-term debt	16
			Total liabilities	$110
Gross fixed assets 211			Common stock	109
Less depreciation 59			Retained earnings	171
Net fixed assets $152			Total stockholders' equity	$280
Total assets $390			Total liabilities and equity	$390

Income Statement for Year Ended December 31, 2014 (Millions of Dollars)
Net sales	$650.0
Cost of goods sold	500.5
Gross profit	$149.5
Selling expenses	$52.0
EBITDA	$97.5
Depreciation expense	13.0
Earnings before interest and taxes (EBIT)	$84.5
Interest expense	4.7
Earnings before taxes (EBT)	$79.8
Taxes (40%)	31.9
Net income	$47.9

Calculate those ratios that you think would be useful in this analysis. Do not round intermediate steps. Round your answers to two decimal places.

	Firm	Industry Average
Current ratio	___x	3.6x
Debt to total capital	___%	14.42%
Times interest earned	___x	12.76x
EBITDA coverage	___x	11.52x
Inventory turnover	___x	10.74
DSO	__days	21.19 days
F.A. turnover	___x	5.13x
T.A. turnover	___x	3.08x
Profit margin	___%	6.63%
Return on total assets	___%	20.14%
Return on common equity	___%	27.71%
Return on invested capital	___%	26.05%

Construct aa Du Pont equation, and compare the company's ratios to the industry average ratios. Do not round intermediate steps. Round your answers to two decimal places.

	Firm	Industry
Profit margin	_____%	6.63%
Total assets turnover	_____x	3.08x
Equity multiplier	_____x	_____x