4-15. (Ratio analysis) Artz, Inc.'s financial statements for 2018 are shown below: Sales $ 4,500 Cost of goods sold (2.800) Gross profits $ 1,700 Operating expenses Marketing and general and administrative expenses $(1,000) Depreciation expenses (200) Total operating expenses $ (1,200) Operating profits $ 500 Interest expense (60) Earnings before taxes (taxable income) Income taxes (92) Net Income $ 348 Cash $ 500 Account receivables 600 $ 440 Inventories 900 Total current assets $ 2,000 Gross fixed assets $ 2,100 Accumulated depreciation (800) Net fixed assets $ 1.300 Total assets $ 3.300 Liabilities (Debt) and Equity Accounts payable $ 500 Short-term notes payable 300 Total current liabilities $ 800 Long-term debt 400 Total liabilities $ 1,200 Common equity: Common stock (par and paid in capital) $ 500 Retained earnings 1.600 Total common equity $ 2.100 Total liabilities and equity $ 3,300 The chief financial officer for Artz has acquired industry averages for the following ratios: Current ratio 3.0 Acid-test ratio 1.50 Days in receivables 40.0 Days in inventories 70.2 Operating return on assets 12.5% Operating profit margin 8.0% Total asset turnover 1.6 Fixed-asset turnover 3.1 Debt ratio 33.0% Times interest earned 6.0 Return on equity 11.0% a. Compute the ratios listed above for Artz. b. Compared to the industry: 1. How liquid is the firm? 2. Are its managers generating attractive operating profit on the firm's assets? 3. How is the firm financing its assets? 4. Are its managers generating a good return on equity