a) Calculate the key financial ratios for 2021 and 2022 that are listed

b) Assess the company's asset management position, and determine how it compares with the industry and how its asset management efficiency has changed over time.

c) 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 (Int)

\begin{tabular}{|c|c|c|} \hline Income Statement (in '000s) & & \\ \hline & & FY 2022 \\ \hline Sales revenue & s & 50,000 \\ \hline Costs except depreciation & $ & 35,000 \\ \hline EBITDA & $ & 15,000 \\ \hline Depreciation and amortization & s & 5,000 \\ \hline \begin{tabular}{l} Earnings before interest and taxes \\ (EBIT) \end{tabular} & $ & 10,000 \\ \hline Interest expense & s & 2,000 \\ \hline Earnings before taxes (EBT) & $ & 8,000 \\ \hline Taxes (20\%) & $ & 1,600 \\ \hline Net Income & $ & 6,400 \\ \hline Common stock dividends & $ & 2,560 \\ \hline Increase in retained earnings & s & 3,840 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline Balance Sheet (in '000s) & & \\ \hline & & FY 2022 \\ \hline Assets & & \\ \hline Cash and equivalents & $ & 2,000 \\ \hline Accounts receivable & $ & 4,000 \\ \hline Inventory & s & 4.000 \\ \hline Total current assets & s & 10,000 \\ \hline Property, plant and equipment & $ & 60,000 \\ \hline Total assets & $ & 70.000 \\ \hline Liabilities and Stockholders' Equity & & \\ \hline Accounts payable & $ & 6.000 \\ \hline Long-term debt & $ & 15.000 \\ \hline Tota1 1iabilities & \$ & 21.000 \\ \hline Common stock & s & 30,000 \\ \hline Retained earnings & s & 19,000 \\ \hline \begin{tabular}{l} Total liabilities and stockholders ' \\ equity \end{tabular} & $ & 70.000 \\ \hline \end{tabular}