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 to check the box to 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 Value Correct/Incorrect Ratios Value Correct/Incorrect Asset management ratio Total assets turnover 40.00 Ratios Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (96) 1.43 11.34 10.53 Financial ratios Equity multiplier 27.41 1.82 Balance Sheet Data Income Statement Data Cash Sales $20,000,000 Accounts receivable 12,000,000 $1,000,000 2,000,000 3,000,000 6,000,000 Inventory Cost of goods sold Gross profit Operating expenses EBIT Current assets $1,200,000 400,000 1,600,000 3,200,000 4,500,000 7,700,000 1,575,000 4,725,000 8,000,000 5,000,000 3,000,000 Accounts payable Accruals Notes payable Current liabilities Long-term debt Total liabilities Common stock Retained earnings Total equity Total debt and equity Interest expense 732,000 EBT 2,268,000 793,800 Net fixed assets 8,000,000 Taxes Net income $1,474,200 6,300,000 $14,000,000 Total assets $14,000,000