Comprehensive Ratio Analysis

The Jimenez Corporation's forecasted 2020 financial statements follow, along with some industry average ratios.

Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2020

Assets
Cash	$ 71,000
Accounts receivable	439,000
Inventories	895,000
Total current assets	$1,405,000
Fixed assets	431,000
Total assets	$1,836,000
Liabilities and Equity
Accounts payable	$ 332,000
Notes payable	102,000
Accruals	168,000
Total current liabilities	$ 602,000
Long-term debt	404,650
Common stock	574,640
Retained earnings	254,710
Total liabilities and equity	$1,836,000

Jimenez Corporation: Forecasted Income Statement for 2020
Sales	$4,290,000
Cost of goods sold	3,713,000
Selling, general, and administrative expenses	408,456
Earnings before interest and taxes (EBIT)	$ 168,544
Interest expense	30,000
Earnings before taxes (EBT)	$ 138,544
Taxes (25%)	34,636
Net income	$ 103,908
Jimenez Corporation: Per Share Data for 2020
EPS	$ 4.52
Cash dividends per share	$ 0.95
P/E ratio	4.0
Market price (average)	$18.07
Number of shares outstanding	23,000
Industry Ratiosa
Quick ratio	1.0
Current ratio	2.7
Inventory turnoverb	7.0
Days sales outstandingc	32.0	days
Fixed assets turnoverb	13.0
Total assets turnoverb	2.6
Return on assets	9.1	%
Return on equity	18.2	%
Profit margin on sales	3.5	%
Debt-to-assets ratio	21.0	%
Liabilities-to-assets ratio	50.0	%
P/E ratio	5.0
Market/Book ratio	3.5
Notes:
aIndustry average ratios have been stable for the past 4 years.
bBased on year-end balance sheet figures.
cCalculation is based on a 365-day year.

Calculate Jimenez's 2020 forecasted ratios, compare them with the industry average data, and comment briefly on Jimenez's projected strengths and weaknesses. Assume that there are no changes from the prior period to any of the operating balance sheet accounts.

_________________________Question:_____________________________

Do not round intermediate calculation. Round your answers to two decimal places.

Ratios	Firm	Industry	Comment
Quick ratio	_____	1.0	(Poor) or (High)
Current ratio	_____	2.7	(Poor) or (High)
Inventory turnover	_____	7.0	(Poor) or (High)
Days sales outstanding	_____ days	32 days	(Poor) or (High)
Fixed assets turnover	_____	13.0	(Poor) or (High)
Total assets turnover	_____	2.6	(Poor) or (High)
Return on assets	_____%	9.1%	(Poor) or (High)
Return on equity	_____%	18.2%	(Poor) or (High)
Profit margin on sales	_____%	3.5%	(Poor) or (High)
Debt-to-assets ratio	_____%	21.0%	(Poor) or (High)
Liabilities-to-assets ratio	_____%	50.0%	(Poor) or (High)
P/E ratio	_____	5.0	(Poor) or (High)
Market/Book ratio	_____	3.5	(Poor) or (High)

So, the firm appears to be (badly) or (well) managed.