(Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Sterling Company Income Statement for the Year Ended December 31, 2022 Sales revenue $9,998,000 Less: Cost of goods sold 7,483,000 Gross profits $2,515,000 Less: Operating expenses Selling expense $314,000 General and administrative expenses 665,000 Lease expense 48, 100 Depreciation expense 223,000 Total operating expense 1,250,100 Operating profits $1,264,900 Less: Interest expense 190,000 Net profits before taxes $1,074,900 Less: Taxes (rate = 21%) 225,729 Net profits after taxes $849,171 Less: Preferred stock dividends 67,250 Earnings available for common stockholders $781,921 Earnings per share (EPS) $3.87 (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Current assets Cash Marketable securities Accounts receivable Inventories Sterling Company Balance Sheet December 31, 2022 Assets Liabilities and Stockholders' Equity Current liabilities $206,000 Accounts payable [b] $923,000 47,900 Notes payable 206,000 816,000 Accruals 89,000 936,000 Total current liabilities $1,218,000 Sterling Company Balance Sheet December 31, 2022 Assets Liabilities and Stockholders' Equity Current assets Current liabilities Cash $206,000 Accounts payable [b] $923,000 Marketable securities 47,900 Notes payable 206,000 Accounts receivable 816,000 Accruals 89,000 Inventories 936,000 Total current liabilities $1,218,000 Total current assets $2,005,900 Long-term debt (includes financial leases) [c] $2,882,900 Gross fixed assets (at cost) [a] $12,003,000 Stockholders' equity Less: Accumulated depreciation 2,999,000 Preferred stock (26,900 Net fixed assets $9,004,000 shares, $2.50 dividend) $1,024,000 Common stock (202,000 Other assets $998,000 shares at $3.50 par) [d] 707,000 Paid-in capital in excess of 5,187,000 Retained earnings 989,000 Total stockholders' equity $7,907,000 Total liabilities and Total assets $12,007,900 stockholders' equity $12,007,900 [a] The firm has an 8-year financial lease requiring annual beginning-of-year payments of $48,100. Five years of the lease have yet to run. [b] Annual credit purchases of $6,182,000 were made during the year. [c] The annual principal payment on the long-term debt is $79,000. [d] On December 31, 2022, the firm's common stock closed at $39.87 per share. par value Historical and Industry Average Ratios for Sterling Company Ratio Actual 2020 Actual 2021 Industry average, 2022 Current ratio 1.38 1.53 1.83 Quick ratio 1.00 0.92 1.05 Inventory turnover 9.62 9.31 8.70 Average collection period 46.2 days 37.5 days 36.10 days Average payment period 60.8 days 63.1 days 47.9 days Total asset turnover 0.74 0.80 0.74 Debt ratio 0.19 0.19 0.29 Times interest earned ratio 8.4 7.5 8.2 Fixed-payment coverage ratio 4.9 4.6 4.6 Gross profit margin 0.30 0.27 0.25 Operating profit margin Net profit margin 0.079 0.079 0.070 Return on total assets (ROA) 0.059 0.064 0.054 Return on common equity (ROE) 0.085 0.091 0.090 Earnings per share (EPS) $2.57 $3.02 $2.32 Pricelearnings (P/E) ratio 9.3 7.8 8.5 Market/book (M/B) ratio 1.21 1.06 1.11 Integrative: Complete ratio analysis Given the following financial statements historical ratios, and industry averages B, calculate Sterling Company's financial ratios for the most recent year. (Assume a 365-day year.) Analyze its overall financial situation from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt, profitability, and market