Balance Sheet: Organics for Me not You Inc. Dec 31, 2017 Assets Current Intermediate Long Term Total Assets 100,000 200,000 300,000 600,000 Liabilities Current Intermediate 15,000 Long Term Total Liabilities 265,000 Owner Equity 335,000 50,000 200,000 Year ending 2017 Net Income: 150,000; Interest Expense: 12,000; Total Expenses (including interest expense) 185,000 Inventory: 40,000 (included in current asset value above) Industry Averages Current Ratio = 1.74 Quick Ratio 1.2 Working Capital/Expenses N/A Debt to Asset .2 - Debt to Equity 4 Operating Profit Margin N/A Return on Assets-.20 or 20% Return on Equity-.15 or 15% Bank Rate = 5% Assess the performance of this firm using the liquidity, profitability and overall firm financial ratios. I suggest you use the following format/table in presenting your solutions for this question. Consider using the industry averages as a comparison value for your analysis. Also, because you do not have average values- simply use the available single values. a. LIQUIDITY Computed value & formula utilizedAssessment of the computed value . Current Ratio Quick Ratio " Working Capital/Expenses Summary of Liquidity OVERALL FINANCIAL STABILITY . Debt to Asset - Debt to Equity b. Comment on the overall LIQUIDITY of the firm Computed value & formula utilizedAssessment of the value c. d. Summary of overall financial Comment on the overall FINANCIAL STABILITY of the firm stability e. PROFITABILITY Computed value & formula utilizedAssessment of the value Operating Profit Margin Return on Assets " Return on Equity f. Summary of Profitability Comment on the overall PROFITABILITY of the firm