DuPont analysis worksheetDuPont analysis involves breaking down return on equity $($ROE$)$ into threecomponents:Profit Margin: Assess the company's ability to generate profits from its revenue.It's calculated as Net Income divided by Revenue.Asset Turnover: Measure of how efficiently the company uses its assets togenerate revenue. Calculated as Revenue divided by Average Total Assets.Financial Leverage $($Equity Multiplier$)$: Examines the company's use of debt.It's calculated as Average Total Assets divided by Average Shareholders'Equity.The overall formula for DuPont analysis is:ROE$=$ProfitMargin$\backslash$times AssetTurnover$\backslash$times FinancialLeverageThis breakdown helps identify specific areas where the company excels or needs improvement interms of profitability, asset utilization, and financial leverage. Always consider industry benchmarksfor a more comprehensive analysis.Research and discuss how to deal with the following financial situation problemsProblem $1$: Declining ROE$$ Issue: A company's ROE has been consistently decreasing over the past few years.

Problem $2$: High Financial Leverage$$ Issue: The company has a high financial leverage ratio.Problem $3$: Inconsistent Profit Margins$$ Issue: Profit margins fluctuate significantly from year to year.Problem $4$Calculate ROE using the DuPont formula.:

$$ Net Income: $$500,000$ Revenue: $$2,000,000$ Average Total Assets: $$1,200,000$ Average Shareholders' Equity: $$800,000$ROE