The following table lists the 2018 and 2019 financial statements for Otago Bay Marine Motors, a major manufacturer of top-of-the-line outboard motors.

Otago Bay Marine Motors Balance Sheets ($ in thousands)

Otago Bay Marine Motors income statements ($ in thousands)

a. On the basis of the information provided, calculate the following financial ratios for 2018 and 2019.

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.

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Assets Current assets Cash and cash equivalents Accounts receivable, net of allowances Inventories Prepaid expenses Total current assets Property, plant, and equipment, at cost Less: Accumulated depreciation and amortization Net fixed assets Other assets Total assets Liabilities and shareholders' equity Current liabilities Notes and accounts payable Dividends payable Accrued liabilities Total current liabilities Noncurrent liabilities Long-term debt Shareholders' equity Common stock Capital in excess of par value Retained earnings Total shareholders' equity Total liabilities and equity Average number of common shares outstanding 2019 As of December 31 $ 56,203 $ 20,656 $ 29,294 $ 5,761 $ 111,914 $ 137,273 -$ 50,574 $ 86,699 $105,327 $303,940 $ 28,860 $ 1,026 $ 20,976 $ 50,862 $ 40,735 $ 7,315 $ 111,108 $ 93,920 $212,343 $303,940 10,848,000 2018 $ 88,942 $ 12,889 $ 24,845 $ 6,536 $133,212 $ 85,024 -$ 44,767 $ 40,257 $ 51,001 $224,470 $ 4,927 $ 791 $ 16,780 $ 22,498 $ 20,268 $ 7,103 $ 86,162 $ 88,439 $181,704 $224,470 10,848,000