Saturn Computer is considering to expand, but before that, the management wants to know the financial position of the company compared to that of the industry. Data for Saturn Computer Co. and its industry averages follow.

Items	Amount ($)	Items	Amounts ($)
Cash	87,500	Accounts Payable	110,000
Total Operating Expense	123,000	Interest Expense	26,500
Income Tax	18,200	Total Sales	1,607,500
Net Fixed Assets	292,500	Long-term Bank Loan	246,500
Cost of Goods Sold	1,352,500	Common Stock Equity	361,000
Inventories	211,500	Other Current Liabilities	84,000
Accounts Receivables	336,000	Notes Payable (Maturity within 1 year)	107,000
Total Operating Profit	110,000	Net Profit after tax	88,300

Industry Average Ratios
Current ratio 2.8	Quick Ratio 1.8
Debt-to-Equity ratio 20%	Total Assets Turnover 1.50
Times interest earned 9	Net Profit margin 6.50%
Inventory turnover 10	Return on Total Assets 9%
Financial Leverage 2.0	Return on Equity 19.50%

Calculate the following ratios for Saturn:

1) Net Profit Margin,

2) Total Asset Turnover

3) Financial Leverage,

4) Return on Equity

5) Construct the DuPont equation of Saturn and the industry. Based on the DuPont equation constructed identify the area where Saturn needs to improve its performance.