P7.17 Listed here are the 2009 and 2010 financial statements for Otago Bay Marine Motors, a major manufacturer of top-of-the-line outboard motors.

a. On the basis of the information provided, calculate the following financial ratios for 2009 and 2010. Current ratio Total asset turnover Debt-equity ratio Net profit margin ROA ROE EPS P/E ratio Dividend yield Payout ratio Price-to-book-value Otago Bay Marine Motors 2009 2010 Industry Averages (for 2010) 2.36 1.27 10.00 9.30 15.87 19.21 1.59 19.87 ,44 .26 6.65

b. Considering the financial ratios you computed, along with the industry averages, how would you characterize the financial condition of Otago Bay Marine Motors? Explain.