Question #1: (5+3=8 Marks) a) ACC Ltd. has been in the construction business for the last twenty years. Recently they are facing a lot of competition from the other companies in the industry. Therefore, they are considering analyzing their comparative financial position within the construction Industry. Data for ACC Ltd. and its industry averages are as follows: (3+2=5 Marks) Items Items Cash Total Operating Expense Income Tax Amount ($) 77,500 185,000 18,200 292,500 1,392.500 241,500 Amounts ($) 129,000 24,500 1,682,500 256,500 361,000 84,000 Accounts Payable Interest Expense Total Sales Long-term Bank Loan Common Stock Equity Other Current Liabilities Notes Payable (Maturity within 1 year) Net Profit after tax Net Fixed Assets Cost of Goods Sold Inventories Accounts Receivables Total Operating Profit 336,000 117,000 105,000 62,300 Current ratio 3.5 Debt-to-Equity ratio 20% Times interest earned 7 Inventory turnover 10.5 Financial Leverage 2.35 Industry Average Ratios Quick Ratio 1.8 Total Assets Turnover 2.00 Net Profit margin 2.75% Return on Total Assets 9% Return on Equity 12.93% 1. Calculate the following ratios for ACC: 1) Net Profit Margin, 2) Total Asset Turnover 3) Financial Leverage/Equity Multiplier. 2. Based on the DuPont analysis, Identify the area where ACC needs to improve its performance