The lindenburg Company, a manufacturer and wholesaler of refurbished cars has experienced low profitability in recent years. a new president joined who has asked you to make an analysis of the firm's financial position using the DuPont chart. The most recent industry average ratios and lindenburg's financial statements are pictured below

1) Calculate those ratios that you think would be useful in this analysis. Explain why you chose those ratios.

2) Make a DuPont equation for Lindenburg's and compare the company's ratios to the industry average ratios. Be sure to include

-tax burden

-interest burden

-operating profit margin

- asset turnover ratios in your derivation of the DuPont. What can you infer?

ITotal assets $450 Total liabilities and equity Income Statement for Year Ended December 31 (\$ million) Net sales Cost of goods sold Gross profit Selling expenses Depreciation expense Eamings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Taxes (21\%) Net income $795.0 $660.0 $135.0 $73.5 $2.0 $49.5 S.5 S5.0 $9.45 $5,65