7-14 Comprehensive Ratio Analysis The Jimenez Corporation's forecasted 2019 financial statements follow, along with some industry average ratios. Calculate Jimenez's 2019 forecast- ed ratios, compare them with the industry average data, and comment briefly on Jimenez's projected strengths and weaknesses. Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2019 Assets Cash Accounts receivable Inventories $72,000 439,000 894,000 $1,405,000 431,000 $1,836,000 Total current assets Fixed assets Total assets Liabilities and Equity Accounts payable Notes payable $332,000 100,000 170,000 Accruals 602,000 Total current liabilities Long-term debt Common stock 404,290 Retained earnings Total liabilities and equity 575,000 254 710 $1,836,000 Jimenez Corporation: Forecasted Income Statement for 2019 I Sales $4,290,000 Cost of goods sold (excluding depreciation) 3,580,000 Selling, general, and administrative expenses 370,320 Depreciation 159,000 Earnings before taxes (EBT) $ 180,680 Taxes (40%) 72,272 Net income $ 108,408 $ 4.71 $ 0.95 Jimenez Corporation: Per Share Data for 2019 EPS Cash dividends per share P/E ratio Market price (average) Number of shares outstanding 5.0 $23.57 23,000 1.0 2.7 I I Industry Ratios Quick ratio Current ratio Inventory turnover Days sales outstanding Fixed assets turnover Total assets turnover 7.0 32.0 days 13.0 2.6 9.1% 18.2% Return on assets Return on equity Profit margin on sales Debt-to-assets ratio 3.5% 21.0% Liabilities-to-assets ratio 50.0% P/E ratio 6.0 Drico/diach flow ratin 25 Industry Ratios Quick ratio 1.0 2.7 Current ratio 7.0 Inventory turnover 32.0 days Days sales outstanding Fixed assets turnover" 13.0 I 2.6 Total assets turnover 9.1% Return on assets 18.2% 3.5% Return on equity Profit margin on sales Debt-to-assets ratio Liabilities-to-assets ratio 21.0% 50.0% 6.0 P/E ratio 3.5 Price/Cash flow ratio Market/Book ratio 3.5 Notes: "Industry average ratios have been stable for the past 4 years Based on year-end balance sheet ligures "Calculation is based on a 365-day year