Calculate the current ratio, the acid test and the debt ratios for Pamplin for both 2014 and 2015.

Did you get the data you needed in order to calculate these 3 ratios from a) the income statement, b) the balance sheet or a c) combination of the two? No explanation needed just indicate the source of your data.

None of these ratios measure profitability. Tell me what each of them measure. A sentence or two for each is what I have in mind.

For each ratio, comment on:

a) How Pamplin compares to the industry norm and

b) The trend in each ratio from 2014 to 2015

INDUSTRY NDAN 5.00 3.00 2.20 Current ratio Acid-test (quick) ratio loventory turnover Average collection period Debt ratio Times interest earned Total asset turnover Faed-assed turnover Operating profit margin Return on common equity 90.00 0.33 7.00 0.75 1.00 20% 9% Pamplin, Inc. Balance Sheet at 12/31/2014 and 12/31/2015 2015 $ 150 $25 $ 200 450 550 $1,200 625 $1.200 Cash Accounts receivable Inventory Current assets Plant and equipment Less accumulated depreciation Net plant and equipment $2,200 $2.600 11.2001 $1,200 $1,400 $2400 $2.600 $ 200 $ 150 $ 300 Total assets Liabilities and Owners' Equity Accounts payable Notes payable current 19%) Current liabilities Bonds (8.33% interest Total debt Owners' equity common stock Paid-in capital Retained earnings Total owners' equity Total liabilities and owners' equity $ 200 600 $ 800 $ 900 $ 300 600 700 600 800 $120 $1.600 $2.400 $2.600 come Statement for Years Ending 12/31/2014 and 1201015 Pamplit, Inc. Income 2015 $1.450 51 200 Cast of goods sold $6.00 (30) expenses per 240 $ 360 $ 250 income before taxes $ 200 80 $ 120 $ 296 118 178 Net income recoshow the remor being treat INDUSTRY NDAN 5.00 3.00 2.20 Current ratio Acid-test (quick) ratio loventory turnover Average collection period Debt ratio Times interest earned Total asset turnover Faed-assed turnover Operating profit margin Return on common equity 90.00 0.33 7.00 0.75 1.00 20% 9% Pamplin, Inc. Balance Sheet at 12/31/2014 and 12/31/2015 2015 $ 150 $25 $ 200 450 550 $1,200 625 $1.200 Cash Accounts receivable Inventory Current assets Plant and equipment Less accumulated depreciation Net plant and equipment $2,200 $2.600 11.2001 $1,200 $1,400 $2400 $2.600 $ 200 $ 150 $ 300 Total assets Liabilities and Owners' Equity Accounts payable Notes payable current 19%) Current liabilities Bonds (8.33% interest Total debt Owners' equity common stock Paid-in capital Retained earnings Total owners' equity Total liabilities and owners' equity $ 200 600 $ 800 $ 900 $ 300 600 700 600 800 $120 $1.600 $2.400 $2.600 come Statement for Years Ending 12/31/2014 and 1201015 Pamplit, Inc. Income 2015 $1.450 51 200 Cast of goods sold $6.00 (30) expenses per 240 $ 360 $ 250 income before taxes $ 200 80 $ 120 $ 296 118 178 Net income recoshow the remor being treat