If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: ____________ (net profit margin / operating profit margin), the total asset turnover ratio, and ____________. (equity multiplier / debt ratio)

And, according to my understanding of the DuPont equation and its calculation of ROE, the three ratios provide insights into the companys ___________ (use of debt versus equity financing / shareholder and dividend management), effectiveness in using the companys assets, and ____________. ( management of its revenues and depreciation methods / control over its expenses)

Check the box to the side of the calculated value if the calculation is correct and leave it unchecked if the calculation is incorrect. Can you please confirm whether my answers are correct for parts 2 and 3? For part 1, the bolded phrases are the options available. Thank you

Balance Sheet Data Cash $700,000 Accounts payable Accounts receivable 1,400,000 Accruals Inventory 2,100,000 Notes payable Current assets 4,200,000 Current liabilities Long-term debt Total liabilities Common stock Net fixed assets 5,600,000 Retained earnings Total equity Total assets $9,800,000 Total debt and equity $840,000 280,000 1,120,000 2,240,000 3,640,000 5,880,000 980,000 2,940,000 3,920,000 $9,800,000 Income Statement Data Sales $14,000,000 Cost of goods sold 7,000,000 Gross profit 7,000,000 Operating expenses 3,500,000 EBIT 3,500,000 Interest expense 571,200 EBT 2,928,800 Taxes 1,025,080 Net income $1,903,720 Hydra Cosmetics Inc. DuPont Analysis Value Correct/Incorrect 1.43 Correct Ratios Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) Value Correct/Incorrect Ratios Asset management ratio 50.00 Correct Total assets turnover 20.92 Incorrect 19.43 Incorrect Financial ratios 46.40 Incorrect Equity multiplier 1.67 Incorrect Do not round intermediate calculations and round your final answers up to two decimals. Hydra Cosmetics Inc. DuPont Analysis Value Calculation Numerator 7,000,000 3,500,000 50.00 / / Denominator 14,000,000 14,000,000 14,000,000 3,920,000 25.00 / Ratios Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) Asset management ratio Total assets turnover Financial ratios Equity multiplier 15.69 2,196,600 2,196,600 / 56.04 14,000,000 9,800,000 1.43 9,800,000 1 3,920,000 2.50