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' c. Assess Corrigan's 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 f. Calculate Corrigan's ROE as well as the industry average ROE, using the DuPont . What do you think would happen to its ratios if the company initiated cost-cutting how the liquidity position has changed over time. peers and how its asset management efficency has changed over time. 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. s asset management position, and determine how it coempares with debt management position, and determine how it compares with compares with equation. From this analysis, how does Corrigan's financial position compare with the industry average numbers? 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 2014 5 72,000 65,000 328,000 894000 813,000 $1,405,000 $1,206,000 271,000 133,000 61,00057.000 1836000 1667000 2015 Cash Accounts recelvable Inventories 439,000 Total current assets 238,000 132,000 Land and building Machinery Other fboed assets Total assets $80,000 45,010 72,708 Accounts payable Accrued liabilities Notes payable 476990457912 Total current liabilities 602,000 571,500 Long-term debt Common stock Retained earnings Total liabilities and equity. 575,000 261,602 $1,667,000 575,000 254710 $1296, Corrigan Corporation: Income Statements for Years Ending December 31 2015 2014 $4,240,000 $3,635,000 3,080,000 2,980,000 560,000 655,000 297,550 154,500 97,680 202.950 Sales Cost of goods sold Gross operating profit General administrative and selling expenses 159,000 EBIT