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Balance Sheet Data Cash $800,000 Accounts payable $960,000 Accounts receivable 1,600,000 Accruals 320,000 Inventory 2,400,000 Notes payable 1,280,000 Current assets 4,800,000 Current liabilities 2,560,000 Long-term debt 2,720,000 Total liabilities 5,280,000 Common stock 1,080,000 Net fixed assets 4,800,000 Retained earnings 3,240,000 Total equity 4,320,000 Total assets $9,600,000 Total debt and equity $9,600,000 Income Statement Data Sales $16,000,000 Cost of goods sold 9,600,000 Gross profit 6,400,000 Operating expenses 4,000,000 EBIT 2,400,000 Interest expense 480,000 EBT 1,920,000 Taxes 672,000 Net income $1,248,000 Value Value Correct/Incorrect Correct/Incorrect Ratios Asset management ratio Total assets turnover 40.00 1.67 Ratios Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) 12.00 13.00 Financial ratios Equity multiplier 39.51 1.82 Value Calculation Numerator Denominator / / Ratios Profitability ratios Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) Asset management ratio Total assets turnover Financial ratios Equity multiplier Check all that apply. Use more debt financing in its capital structure and increase the equity multiplier. Decrease the amount of debt financing used by the company, which will decrease the total assets turnover ratio. Increase the firm's bottom-line profitability for the same volume of sales, which will increase the company's net profit margin. Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin

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