Below is the financial statements (which is also the template) for a particular company for 2022 and 2021. You are to undertake a financial analysis of this company.

Company's December 31 Balance Sheets
Assets	2022	2021
Cash	$72,000	$65,000
Accounts receivable	$439,000	$328,000
Inventories	$894,000	$813,000
Total current assets	$ 1,405,000	$ 1,206,000
Land and building	238,000	271,000
Machinery	132,000	133,000
Other fixed assets	61,000	57,000
Total assets	$ 1,836,000	$ 1,667,000
Liabilities and equity
Accounts payable	$ 432,000	$ 409,500
Accrued liabilities	170,000	162,000
Total current liabilities	$ 602,000	$ 571,500
Long-term debt	404,290	258,898
Common stock	575,000	575,000
Retained earnings	254,710	261,602
Total liabilities and equity	$ 1,836,000	$ 1,667,000
Company's December 31 Income Statement
	2022	2021
Sales	$ 4,240,000	$ 3,635,000
Cost of goods sold	3,680,000	2,980,000
Gross operating profit	$ 560,000	$ 655,000
General admin. and selling epenses	236,320	213,550
Depreciation	159,000	154,500
Miscellaneous	134,000	127,000
EBT	$ 30,680	$ 159,950
Taxes (40%)	12,272	63,980
Net income	$ 18,408	$ 95,970
Per-Share Data	2022	2021
EPS	$0.80	$4.17
Cash dividends	$1.10	$0.95
Market price (average)	$12.34	$23.57
P/E ratio	15.4	5.65
Number of shares outstanding	23,000	23,000

1) Calculate the key financial ratios[1] for 2021 and 2022 that are listed in the excel file

2) Assess the companys asset management position, and determine how it compares with the industry and how its asset management efficiency has changed over time.

3) What do you think would happen to its ratios if the company initiated cost-cutting measures that allowed it to hold lower levels of inventory and substantially decreased the cost of goods sold? No calculations are necessary. Think about which ratios would be affected by changes in these two accounts.