signment Analysis of Financial Sttemeits son Do you have 10 or 15 minutes that you can spare? You Sure, I've got a meeting in an hour, but I don't want to start something new and then be interrupted by the meeting, so how can I help? I've been reviewing the company's financial statements and looking for ways to improve our performance, in general, and the company's return on equity, or ROE, in particular. Anja, my new team leader, suggested that I start by using a DuPont analysis, and I'd like to run my numbers and conclusions by you to see whether I've missed anything. son Here are the balance sheet and income statement data that Anja gave me, and here are my notes with my calculations. Could you start by making sure that my numbers are correct? You Give me a minute to look at these financial statements and to remember what I know about the DuPont analysis. Income Statement Data Balance Sheet Data $1,400,000 Accounts payable $28,000,00 560,000 Cost of goods sold 14,000,00o $1,680,000 Sales Cash Accounts receivable Inventory 2,800,000 Accruals 4,200,000 Notes payable 14,000,000 8,400,000 Curent liabilities ,480,000Operating expenses 7,000,000 7,000,000 840,000 6,160,000 2,156,000 $4,004,000 2,240,000 Gross profit Current assets 4,760,000 EBIT 9,240,000 Interest expense 1,890,000 EBT 5,670,000 Taxes 7,560,000 Net income Long-term debt Total liabilities Common stock Net fixed assets 8,400,000 Retained earnings Total equity Total assets $16,800,000 Total debt and equity $16,800,000 It I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the , the total asset turnover ratio, and the And, according to my understanding of the DuPont equation and its calculation of ROE, the three ratios provide insights into the company's effectiveness in using the company's assets, and O Type here to search