ABC, Inc. 2013 Ratias Industry Average Ratios in 2013 Solve Problems 4-11 - Short Answers: Using the information provided below for ABC, Inc., please write the appropriate calculations and/or short answer to the below questions (4 points cach): ABC, Inc. Balance Sheet (in thousands) December 31, 2014 Assets Cash Accounts receivable Inventorics Total current assets Gross fixed asscts Accumulated depreciation Nct fixed assets Total assets $2,000 17,800 8.700 28,500 70,000 26.500 43,500 $72,000 Current ratio Acid test ratio Average collection period Inventory turnover Fixed assets turnover Total asset turnover Debt ratio Times-interest-earned Net profit margin Return on equity 1.2 0.89 30 days 18.1 4.1 2.78 50% 5.5% 1.15% 5.21% 1.4 0.94 25 days 20.3 4.8 2.8 60% 4.5% 1.5% 7.32% 4) In 2014, ABC's average collection period is: 5) In 2014, ABC's inventory turnover is: Liabilities and Equity Accounts payable Accruals Total current liabilities Long-term debt Total liabilities Common stock (par value and paid in capital) Retained earnings Total stockholders' equity Total Liabilities and Equity $18,000 13,350 31,350 8,250 39,600 2.000 30,400 32.400 $72,000 6) In 2014, ABC's fixed asset turnover is: 7) Since 2013, ABC's efficiency at using its assets has: 8) In 2014, the improvement in ABC's return on equity occurred because: 9) Since 2013, ABC's liquidity has: 10) Since 2013, ABC's inventory management has: ABC, Inc. Income Statement in thousands) December 31, 2014 11) How has the company's financial condition changed since 2013? How does it compare to its industry? Sales (all credit) Cost of goods sold Gross profit on sales Operating expenses Operating income Interest expense Earnings before tax Income tax Net income available to common stockholders $200,000 140.000 60,000 56.000 4,000 1.000 3,000 1.050 $ 1,950