4-25 RATIO ANALYSIS The Corrigan Corporation's 2014 and 2015 financial statements follow, along with some industry average ratios. a. Assess Corrigan's liquidity position, and determine how it compares with peers and b. Assess Corrigan's asset management position, and determine how it compares with e. Assess Corrigan's debt management position, and determine how it compares with d. Assess Corrigan's profitability ratios, and determine how they compare with peers and e. Assess Corrigan's market value ratios, and determine how its valuation compares with . Calculate Corrigan's ROE as well as the industry average ROE, using the DuPont how the liquidity position has changed peers and how its asset management peers and how its debt management has changed over time. how its profitability position has changed over time. peers and how it has changed over time. equation From this analysis, how does Corrigan's financial position compare with the over time. efficiency has changed over time. industry average numbers? g What do you think would happen to its ratios if the company initiated cost-cutting measures that allowed it to hold lower levels of inventory and substantially decreased the cost of goods sold? No calculations are necessary. Think about which ratios would be affected by changes in these two accounts. Corrigan Corporation: Balance Sheets as of December 31 2015 2014 $72,000 65,000 328,000 Cash Accounts receivable 439,000 894000 813,000 $1,405,000 $1,206,000 271,000 133,000 Total current assets 238,000 Land and bulding Machinery Other fixed assets Total assets 51836000 $1667000 $ 80,000 72,708 40,880 476990 457912 $ 602,000 571,500 258,898 575,000 Accounts payable Accrued liabilities Notes payable 45,010 Total current liabilities Long-term debr Common stock Retained earnings 254710 Totel lisbilities and equity51836000 $1,667000 Corrigan Corporation: Income Statements for Years Ending December 31 2015 2014 Sales Cost of goods sold 4,240,000 $3,635,000 3680000 2980,000 $ 655,000 297,550 159,000154500 Gross operating proft General administrative and selling expenses $ 560,000 303,320 EBIT $ 97,680 202.950