Problem 17.4 Gapenski

I need help with parts (a) and (b)

a- perfom a du pont analysis on BestCare. Assume the industry average ratios are as follows: Total margin-3.8%

total asset turnover 2.1

equity multiplier 3.2

return on equity ROE- 2.5%

b. claculate and interpret the following ratios for bestcare:

return on assets roa- 8.0%

current ratio-1.3

days cash on hand 41 days

average collection period - 7 days

debt ratio-69%

debt-to equity ratio- 2.2

times interest earned tie ratio-2.8

fixed asset turnover ration-5.2