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Can someone help me asap! My tutor is past the deadline I put. I really do need some help!! Financial statement analysis The financial statements

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Can someone help me asap! My tutor is past the deadline I put. I really do need some help!!

image text in transcribed Financial statement analysis The financial statements of Zach Industries for the year ended December 31, 2015, follow. Zach Industries Income Statement for the Year Ended December 31, 2015 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes $160,000 106,000 $ 54,000 $ 16,000 10,000 1,000 10,000 $ 37,000 $ 17,000 6,100 $ 10,900 4,360 $ 6,540 Zach Industries Balance Sheet December 31, 2015 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Land Buildings and equipment Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Total current liabilities Long-term debt Common stock Retianed earnings Total liabilities and stockholders' equity $500 1,000 25,000 45,500 $72,000 $26,000 90,000 38,000 $78,000 $150,000 $22,000 47,000 69,000 22,950 31,500 26,550 150,000 The firm's 3,000 outstanding shares of common stock closed 2015 at a price of $25 per share. A. Use the preceding financial statements to complete the following table. Assume that the industry averages given in the table are applicable for both 2014 and 2015. Ratio Industry Average Current ratio 1.8 Quick ratio *0.70 Inventory turnovera *2.50 Average collection perioda 37.5 Days Debt ratio 65% 67% 65% Times interest earned ratio 3.8 4.0 3.8 Gross profit margin 38% 40% 38% Net profit margin 3.5% 3.6% 3.50% Return on total assets 4.0% 4.0% *4.0% Return on common equity 9.5% 8.0% 9.50% Market/book ratio 1.1 1.2 1.1 Actual 2014 1.81 0.78 2.59 36.5 Days 67% *4.0 40% 3.60% *4.0% *8.0% 1.2 Based on a 365-day year and on end-of-year figures. B. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's overall financial condition. Actual 2015 ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________

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