3. Please calculate the Pulp, Paper, and Paperboard, Inc. financial ratios for the most recent year based on the following balance sheet, income statement, historical ratios and industry averages. Analyze its overall financial situation for the most recent year. Also analyze its overall financial situation from both a cross-sectional and time-series viewpoint. Break your analysis into an evaluation of the firm's liquidity, activity, debt, and profitability. Income Statement Pulp, Paper, and Paperboard, Inc. For the Year Ended December 31, 2019 Sales revenue $2,080,976 Less: Cost of goods sold 1,701,000 Gross profits $ 379,976 Less: Operating expenses 273,846 Operating profits $ 106,130 Less: Interest expense 19,296 Net profits before taxes $ 86,834 Less: Taxes (40%) 34,734 Net profits after taxes 52,100 Balance Sheet Pulp, Paper, and Paperboard, Inc. December 31, 2019 Assets Cash $ 95,000 Accounts receivable 237,000 Inventories 243,000 Total current assets $ 575,000 Gross fixed assets 500,000 Less: Accumulated depreciation 75,000 Net fixed assets $ 425,000 Total assets $1,000,000 Liabilities and stockholders' equity Current liabilities Accounts payable $ 89,000 Notes payable 169,000 Accruals 87,000 Total current liabilities $ 345,000 Long-term debt 188,000 Total liabilities $ 533,000 Stockholders' equity Common stock 255,000 Retained earnings 212,000 Total stockholders' equity $ 467,000 Total liabilities and stockholders' equity $1,000,000 Historical and Industry Average Ratios Pulp, Paper and Paperboard, Inc. 2019 Ratio Current ratio Quick ratio Inventory turnover Average collection period Total asset turnover Debt ratio Times interest earned Gross profit margin Operating profit margin Net profit margin Return on total assets Return on equity 2017 1.6 0.9 8.1 33 days 2.3 60% 2.5 21% 4.7% 1.8% 4.1% 10.3% 2018 1.7 1.0 9.3 37 days 2.2 56% 3.5 19.7% 4.8% Industry 2019 1.6 0.9 8.4 39 days 2.2 58% 2.3 20.4% 4.7% 1.4% 3.08% 7.3% 1.6% 3.5% 7.9%