ABC Company has the following Statement of Comprehensive Income for the year $2023.$

ABC Company

$2023$ Statement of Comprehensive Income

Sales $$36,600$

Cost of goods sold $26,670$

Other expenses $4,641$

Depreciation $1,640$

EBIT $$3,649$

Interest $573$

Taxable Income $$3,076$

Taxes $(40\%)1,230$

Net Income $$1,845$

Dividends $$560$

Add to retained earnings $1,285$

Comm$203$ Term Test $13$

ABC Company

$2023$ Statement of Financial Position

Assets Liabilities and Equity

Current Assets Current Liabilities

Cash $397$ Accounts Payable $845$

Accounts Receivable $638$ Notes Payable $1,928$

Inventory $933$

Total Current Assets $1,968$ Total Current Liabilities $2,773$

Fixed assets Long term debt $5,050$

Net Plant and Equipment $15,412$ Owners$$ equity

Common Stock $323$

Retained earnings $9,234$

Total Equity $9,557$

Total Assets $17,380$ Total Liabilities and Owners Equity $17,380$

Industry Ratios

Current Ratio $1\mathrm{.}43$

Quick Ratio $0\mathrm{.}38$

Cash Ratio $0\mathrm{.}21$

Total asset turnover $0\mathrm{.}85$

Inventory turnover $6\mathrm{.}15$

Receivables turnover $9\mathrm{.}82$

Total debt ratio $0\mathrm{.}52$

Debt to equity ratio $1\mathrm{.}08$

Equity Multiplier $2\mathrm{.}08$

Times Interest Earned $8\mathrm{.}06$

Cash coverage ratio $8\mathrm{.}43$

Profit margin ratio $6\mathrm{.}98\%$

Return on assets $10\mathrm{.}53\%$

Return on Equity $16\mathrm{.}54\%$

Using the above financial information for ABC Company, calculate each of the ratios listed in the

Industry ratios table for ABC Company. Compare the performance of ABC Company to the industry. For

each ratio, comment on how it can be viewed as positive or negative relative to the industry. Also,

comment on how a short$-$term lender and a long$-$term lender will view ABC Company's financial ratios.