Walking down t and asked the following. the hall of your office building with a sheaf of papers in her hand, your friend and colleague, Ashley, stepped into your office Ashley 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 general ways to improve our performance, in general, and the company's return on equity, or ROE, in particular. Mikel, 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 if I've missed anything Ashley Here are the balance sheet and income statement data that Mikel 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. Balance Sheet Data Income Statement Data $1,440,000 Sales 24,000,000 480,000 Cost of goods sold 12,000,000 12,000,000 ,840,000 Operating expenses 6,000,000 6,000,000 633,600 5,366,400 1,878,240 $3,488,160 $1,200,000 Accounts payable Cash Accounts receivable Inventory 2,400,000 Accruals 3,600,000 Notes payable 1,920,000 Gross profit 200,000 Current liabilities Current assets 3,360,000 EBIT 7,200,000 Interest expense 1,200,000 EBT ,600,000 Taxes 4,000,000 Net income Long-term debt Total liablities Common stock Net fixed assets ,800,000 Retained earnings Total equity Total debt and equity $12,000,000 $12,000,000 Total assets into three component ratios: the If I remember correctly, the DuPont equation breaks down our ROE , the total asset turnover ratio, and the And, according to my understanding of the DuPont equation and its calculation of nto the ROE, the three ratios provide insights , effectiveness in using the company's assets, and