A. use the financial statements to complete the following table. assume the industry averages given in the table are applicable for both 2018 and 2019.

B. analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. summarize the company's overall financial condition.

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prouoTTOO $160,300 106,400 $53,900 Zach Industries Income Statement for the Year Ended December, 31, 2019 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes $16,500 10,300 1,010 9,600 $37,410 $16,490 6,100 $10,390 4,340 $6,050 (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Zach Industries Balance Sheet Docambar 31 2010 spreadsheet.) Zach Industries Balance Sheet December 31, 2019 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Land Buildings and equipment Less: Accumulated depreciation Net fixed assets Total assets $530 990 25,200 45,700 $72,420 $26,000 89,900 37,600 $78,300 $150,720 (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Liabilities and Stockholders' Equity Accounts payable Notes payable Totalourront liabilities $22,300 46,700 Conan Liabilities and Stockholders' Equity Accounts payable $22,300 Notes payable 46,700 Total current liabilities $69,000 Long-term debt $22,950 Common stock* $31,200 Retained earnings $27,570 Total liabilities and stockholders' equity $150,720 *The firm's 2,600 outstanding shares of common stock closed 2019at a price of $28 per share. Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Actual 2019 Ratio Industry average Current ratio 1.81 Quick ratio 0.71 Inventory turnover 2.50 Average collection period 37.9 days Debt ratio 64.7% Times interest earned ratio 3.7 Gross profit margin 38% Net profit margin 3.2% Retum on total assets 3.6% Return on common equitiy 8.5% Market/book ratio 1.0 *Based on a 365-day year and end-of-year figures. Actual 2018 1.85 0.79 2.59 36.9 days 66.7% 3.9 40% 3.3% 3.6% 7.0% 1.1 Financial statement analysis The financial statements of Zach Industries for the year ended December 31, 20 a. Use the financial statements to complete the following table Assume the industry averages given in the te b. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, al a. The current ratio is 1.05. (Round to two decimal places.) The quick ratio is 39. (Round to two decimal places.) The inventory turnover is 2.33. (Round to two decimal places.) The average collection period is 574 days. (Round to one decimal place.) The debt ratio is 61.0 %. (Round to one decimal place.) The times interest earned ratio is 2.7. (Round to one decimal place.) The gross profit margin is 33.6 %. (Round to one decimal place.) The net profit margin is 3.8%. (Round to one decimal place.) The return on assets is 4.0 % (Round to one decimal place) The return on common equity is 10.3 % (Round to one decimal place.) The marketbook value is 1.24. (Round to two decimal places.) b. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity. (3) debt, (4) profitability, an A. Liquidity: Zach Industries' liquidity position has deteriorated from 2018 to 2019 and is inferior to the indust B. Activity: Zach Industries' ability to convert assets into cash has deteriorated from 2018 to 2019. Examinati chiruccandi matto ( tuhy debt (4) promete con todo condon www A Liquidity Zachine diy pohon denom 2018 to 2015 and is not to the Thief may not my hormonesty Activity Doch not to convertito con un deteriorated from 2011 to 2018 Domination in the case 20 any new con encanto y sus demand for the period under de for compared to industry. The may be holding in . Dubit: Bohet potion med sine 20th and below and starts totdan below they CD Profitability Arough the group of margins below the indum apendiciting light of good operation to the operating The montent and remonty monoty show DE Machine market in the predisposted on 2010 2018 $159,700 106,500 $53,200 Zach Industries Income Statement for the Year Ended December, 31, 2019 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes $ 16,100 9,700 990 9,600 $36,390 $16,810 6,500 $10,310 4,370 $5,940 Question 4, P3-24 (simil... HW Score a table ASSES Cash $550 Marketable securities 980 Accounts receivable 25,100 Inventories 45,300 Total current assets $71,930 Land $25,700 Buildings and equipment 90,100 Less: Accumulated depreciation 37.800 Net fixed assets $78,000 Total assets $149,930 Elick the icon here in order to copy the contents of the data table below into a preadsheet.) Liabilities and Stockholders' Equity Accounts payable 522 200 Natos payable 45.500 Total current liables $68,700 Long-term debt $23.000 Common stock $31.700 Retained camings 526,500 Total abilities and stockholders' equity $149,930 "The firm's 3,000 outstanding shares of common stock closed Print Done . 5 6 7 8. GO Marketable securities 980 Accounts receivable 25,100 Inventories 45,300 Total current assets $71.830 Land $25,700 Buildings and equipment 90,100 Less: Accumulated depreciation 37,800 Net fixed assets $78,000 Total assets $149,930 icon here in order to copy the contents of the data table below into a heet.) Liabilities and Stockholders' Equity Accounts payable $22.200 Noles payable 46,500 Total current liabilities $68,700 Long-term debit $23,000 Common stock $31,700 Retained earings $26,530 Total liabilities and stockholders' equity $149,930 'The firm's 3,000 outstanding shares of common stock closed 2019ate price of 535 per share Print Done % 5 6 7 8 Data table (Click the icon here in order to copy the contents of the datatable below into a spreadsheet) Actual 2019 Actual 2018 1.85 0.79 2.51 36.8 days 66.9% 3.8 Ratio Industry averago Current ratio 1.81 Quick ratio 0.71 Inventory turnover" 2.52 Average collection period 37.9 days Debt ratio 64.9% Times interest emad ratio 36 Gross profit margin 37% Net profit margin 3.1% Return on total assets 3.6% Retum on common equity 8.4% Marketbook ratio 1.6 "Based on a 365-day year and end-of-year figures 39% 3.2% 3.6% 6.99 17 Print Done more help ppt MacBook Pro % 5 4 6 7 8 R. . U