/static/ nb/ul/evo/index.html?deployment CENGAGE | MINDTAP Ch 04: Assignment - Analysis of Financial Statements Accounts receivable 2,000,000 Accruals 400,000 Cost of goods sold 12,000,000 Inventory 3,000,000 Notes payable ,600,000 Gross profit 8,000,000 Current assets 6,000,000 Current liabilities 3,200,000 Operating expenses 5,000,000 Long-term debt 1,500,000 EBIT 3,000,000 Total liabilities 7,700,000 Interest expense 732,000 common stock 1,575,000 EBT 2,268,000 Net fixed assets 3,000,000 Retained earnings 4,725,000 Taxes 567,000 Total equity 6,300,000 Net income $1,701,000 Total assets $14,000,000 Total debt and equity $14,000,000 If I remember correctly, the DuPont equation breaks down our ROE into three component ratios: the urnover ratio, and the And, according to my understanding of the DuPont equation and its calculation of ROE, the three ratios provide insights into the , effectiveness in using the company's assets, and Now, let's see your notes with your ratios, and then we can talk about possible strategies that will improve the ratios. I'm going the side of your calculated value if your calculation is correct and leave it unchecked if your calculation is incorrect. Hydra Cosmetics Inc. DuPont Analysis Ratios Value Correct/ Incorrect Ratios Value Correct/ Incorrect Profitability ratios Asset management ratio Gross profit margin (%) 40.00 Total assets turnover 1.43 Operating profit margin (%) 11.34 Net profit margin (%) 12.15 Financial ratios Return on equity (e) 31.62 Equity multiplier 1.82