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In: AccountingA firm has been experiencing low profitability in recent years.Perform an analysis of the firm's...A firm has been experiencing low profitability in recent years.Perform an analysis of the firm's financial position using theDuPont equation. The firm has no lease payments but has a $1million sinking fund payment on its debt. The most recent industryaverage ratios and the firm's financial statements are as follows:Industry Average Ratios Current ratio 3.24x Fixed assets turnover7.56x Debt-to-capital ratio 19.22% Total assets turnover 3.62xTimes interest earned 7.30x Profit margin 4.09% EBITDA coverage9.59x Return on total assets 13.63% Inventory turnover 10.79xReturn on common equity 21.57% Days sales outstandinga 25.45 daysReturn on invested capital 20.4% aCalculation is based on a 365-dayyear. Balance Sheet as of December 31, 2016 (Millions of Dollars)Cash and equivalents $37 Accounts payable $28 Accounts receivables39 Other current liabilities 9 Inventories 81 Notes payable 28Total current assets $157 Total current liabilities $65 Long-termdebt 9 Total liabilities $74 Gross fixed assets 115 Common stock 58Less depreciation 42 Retained earnings 98 Net fixed assets $73Total stockholders' equity $156 Total assets $230 Total liabilitiesand equity $230 Income Statement for Year Ended December 31, 2016(Millions of Dollars) Net sales $460.0 Cost of goods sold 363.4Gross profit $96.6 Selling expenses 50.6 EBITDA $46.0 Depreciationexpense 7.4 Earnings before interest and taxes (EBIT) $38.6Interest expense 3.7 Earnings before taxes (EBT) $34.9 Taxes (40%)14.0 Net income $20.9 Calculate the following ratios. Do not roundintermediate steps. Round your answers to two decimal places. FirmIndustry Average Current ratio x 3.24x Debt to total capital %19.22% Times interest earned x 7.30x EBITDA coverage x 9.59xInventory turnover x 10.79x Days sales outstanding days 25.45daysFixed assets turnover x 7.56x Total assets turnover x 3.62x Profitmargin % 4.09% Return on total assets % 13.63% Return on commonequity % 21.57% Return on invested capital % 20.40% Construct aDuPont equation for the firm and the industry. Do not roundintermediate steps. Round your answers to two decimal places. FirmIndustry Profit margin % 4.09% Total assets turnover x 3.62x Equitymultiplier x x