ive tried this twice now and haven't gotten my answers correct. need explanation.

Cash Accounts receivable Inventory Current assets Balance Sheet Data Income Statement Data $1,300,000 Accounts payable $1,560,000 Sales $26,000,000 2,600,000 Accruals 520,000 Cost of goods sold 13,000,000 3,900,000 Notes payable 2,080,000 Gross profit $13,000,000 $7,800,000 Current liabilities $4,160,000 Operating expenses 6,500,000 Long-term debt 6,760,000 EBIT $6,500,000 Total abilities $10,920,000 interest expense 1,060,800 Common stock 1,170,000 EBT $5,439,200 7,800,000 Retained earnings 3,510,000 Taxes 1,903,720 Total equity $4,680,000 Net income $3,535,480 $15,000,000 Total debt and equity $15,600,000 Net fixed assets Total assets If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the turnover ratio, and the equity multiplier net profit margin the total asset And, according to my understanding of the DuPont equation and its calculation of ROE, the three ratlos provide insights into the company's use of debt versus equity financing effectiveness in using the company's assets, and control over its expenses Now, let's see your notes with your ratios, and then we can talk about possible strategies that will improve the ratios. In the dropdown lists next to your values I'm going to select correct if your calculation is correct and incorrect if your calculation is incorrect Now, let's see your notes with your ratios, and then we can talk about possible strategies that will improve the ratios. In the dropdown lists next to your values I'm going to select correct If your calculation is correct and incorrect if your calculation is incorrect Value Correct/Incorrect Canis Major Veterinary Supplies Inc. DuPont Analysis Ratios Value Correct/Incorrect Ratios Profitability ratios Asset management ratio Gross profit margin (9) 50.00 Total asset turnover Operating profit margin (%) 20.92 Net profit margin (%) 22.66 Financial ratios Return on equity (%) 54.01 Equity multiplier 1.67 1.43 MADISON: OK. It looks like I've got a couple of incorrect values, so show me your calculations, and then we can talk strategies for improvement YOU: I've just made rough calculations, so let me complete this table by Inputting the components of each ratio and its value Note: Do not round Intermediate calculations. Round final answers to the nearest whole number Canis Major Veterinary Supplies Inc. DuPont Analysis Calculation Numerator Denominator Value Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) Asset management ratio Total asset turnover Financing ratios Equity multiplier MADISON: I see what I did wrong in my computations. Thanks for reviewing these calculations with me. You saved me from a lot of embarrassment Xavier would have been very disappointed in me if I had showed him my original work So, now let's switch topics and identify general strategies that could be used to positively affect Canis Major's ROC. YOU: OK, so given your knowledge of the component ratios used in the DuPont equation, which of the following strategies should improve the company's ROE? eck all that apply. B Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin. Use more equity financing in its capital structure, which will increase the equity multiplier Use more debt financing in its capital structure and increase the equity multiplier. Decrease the company's use of debt capital because it will decrease the equity multiplier MADISON: I think I understand now. Thanks for taking the time to go over this with me, and let me know when I can return the favor