Assessing Martin Manufacturing's Current Financial Position Terri Spiro, an experienced budget analyst at Martin Manufacturing Company, has been charged with assessing the firm's financial performance during 2019 and its financial position at year-end 2019. To complete this assignment, she gathered the firm's 2019 financial statements (see ). In addition, Terri obtained the firm's ratio values for 2017 and 2018, along with the 2019 industry average ratios (also applicable to 2017 and 2018). These are presented in the table on historical and industry average ratios here ! To Do a. Calculate the firm's 2019 financial ratios, and then fill in the table below. (Assume a 365-day year.) b. Analyze the firm's current financial position from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt profitability, and market. c. Summarize the firm's overall financial position on the basis of your findings in part (b). a. Calculate the firm's 2019 financial ratios, and then fill in the preceding table. (Assume a 365-day year.) Calculate the firm's ratio values for 2019 below: Martin Manufacturing Company Historical and Industry Average Ratios Actual Actual 2018 1.7 1.8 Ratio Actual 2019 2017 Industry average 2019 1.5 Current ratio (Round to one decimal place.) Actual 2017 Actual 2018 0.9 Actual 2019 Ratio Quick ratio Industry average 2019 1.2 1.0 (Round to one decimal place.) 07 Actual 2017 5.2 Ratio Inventory turnover times) Actual 2018 5.0 Actual 2019 Industry average 2019 10.2 (Round to one decimal place.) Ratio Average collection period Actual 2017 50.7 days Actual 2018 55.8 days Actual 2019 days Industry average 2019 46.0 days (Round to one decimal place.) Actual 2017 1.5 Ratio Total asset turnover (times) Actual 2018 1.5 Actual 2019 Industry average 2019 2.0 (Round to one decimal place.) Actual 2017 45.8 Ratio Debt ratio Actual 2018 54.3% Actual 2019 Industry average 2019 24.5% (Round to one decimal place.) Actual Actual Actual Industry average an ex * Data Table - X bial performance during 2019 and its financial position at year-end 2019. To complete this assignment, she gathered the firm's 2019 ented in the table on historical and industry average ratios here for 2 ume time part (Click on this icon in order to copy the Income Statement values into a spreadsheet. i Data Table Click on this icon in order to copy the Balance Sheets values into a spreadsheet) Assu (Click on the following icon 2 in order to copy historical and industry average ratios into a spreadsheet.) Martin Manufacturing Company Historical and Industry Average Ratios Mart $5,075,000 3,704,000 $1,371,000 Industry Actual Actual 2018 1.8 Actual 2019 0.9 Martin Manufacturing Company Income Statement for the Year Ended December 31, 2019 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense $650,000 General and administrative expenses 416,000 Depreciation expense 152,000 Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes Less: Preferred stock dividends Earnings available for common stockholders Earnings per share (EPS) 1,218,000 $153,000 93,000 $60,000 24,000 $36,000 3,000 $33,000 $0.33 Ratio Current ratio Quick ratio Inventory turnover (times) Average collection period Total asset turnover (times) Debt ratio Times interest earned ratio Gross profit margin Net profit margin Return on total assets (ROA) Return on total equity (ROE) Price/earnings (P/E) ratio Market/book (M/B) ratio 2017 1.7 1.0 5.2 50.7 days 1.5 45.8 2.2 27.5% 1.04% 1.6% 3.0% 33.5 1.00 5.0 55.8 days 1.5 54.3% 1.9 26.0% 0.94% 1.4% 3.2% f******* average 2019 1.5 1.2 10.2 46.0 days 2.0 24.5% 2.5 26.0% 1.14% 2.3% 3.1% 38.7 43.4 1.10 1.20 Print Done Martin Manufacturing Company Balance Sheets December 31 Assets 2019 2018 Current assets Cash $25,000 $24,100 Accounts receivable 805,556 763,900 Inventories 700,625 763,445 Total current assets $1,531,181 $1,551,445 Gross fixed assets (at cost) $2,093,819 $1,691,707 C00.000 210 on Industry average 2019 24.5% (Round to one decimal place.) Lo A latalanista Industry average Print none