Baker & Co. has applied for a loan from the Trust Us Bank in order to invest in several potential opportunities. In order to evaluate the firm as a potential debtor, the bank would like to compare Baker & Co. to the industry. The following are the financial statements given to Trust Us Bank:

Balance Sheet 12/31/2013

Cash 270

Accounts receivable 290

Inventory 580

Current assets 1,140

Plant and equipment 1,940

Less: accdepr (600)

Net plant and equipment 1,340

Total assets 2,480

Liabilities and Owners' Equity

Accounts payable 200

Notes payable 0

Current liabilities 200

Bonds 500

Owners' equity

Common stock 305

Paid-in-capital 775

Retained earnings 700

Total owners' equity 1,780

Total liabilities and owners' equity 2,480

Income Statement

Sales (100% credit) 1,330

Cost of goods sold 760

Gross profit 570

Operating expenses 30

Depreciation 200

Net operating income 340

Interest expense 57

Net income before taxes 283

Taxes 96

Net income 187

Industry Norms

Current ratio 5.0

Quick ratio 3.0

Inventory turnover 2.2

Average collection period 90 days

Debt ratio .33

Times interest earned 7.0

Total asset turnover .75

Fixed asset turnover 1.0

Net profit margin 12%

Return on total assets 9.00%

Return on equity 10.43%

Required: Prepare a report to the Trust Us Bank about the firm performance.