Comprenensive Ratio Analysis The Jimenez Corporation's forecasted 2019 financial statements follow, along with some industry average ratios. Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2019 Assets Cash Accounts receivable Inventories $ 72,000 439,000 894,000 $1,405,000 431,000 $1,836,000 Total current assets Fixed assets Total assets Liabilities and Equity Accounts payable Notes payable $ 332,000 112,000 158,000 Accruals Total current liabilities Long-term debt $ 602,000 403,470 575,820 Common stock 254,710 Retained earnings Total liabilities and equity $1,836,000 Jimenez Corporation: Forecasted Income Statement for 2019 Sales Cost of goods sold (excluding depreciation) Selling, general, and administrative expenses Depreciation $4,290,000 3,580,000 379,320 150,000 Earnings before taxes (EBT) $ 180,680 Taxe Questions Navigation Menu 72,272 Net income $ 108,408 Jimenez Corporation: Per Share Data for 2019 EPS 4.71 0.95 Cash dividends per share P/E ratio Market price (average) Number of shares outstanding 5.0 23.57 23,000 1.0 2.7 Industry Ratiosa Quick ratio Current ratio Inventory turnoverb Days sales outstanding Fixed assets turnoverb Total assets turnoverb 7.0 32.0 days 13.0 2.6 Return on assets Return on equity Profit margin on sales 9.1 % 18.2 % 3.5 % 21.0 % Debt-to-assets ratio Liabilities-to-assets ratio 50.0 % P/E ratio 6.0 Price/Cash flow ratio 3.5 Price/Cash flow ratio Market/Book ratio 3.5 Notes: Industry average ratios have been stable for the past 4 years. Based on year-end balance sheet figures. Calculation is based on a 365-day year. Calculate Jimenez's 2019 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. Do not round intermediate calculation. Round DSO to the nearest whole number. Round the other ratios to one decimal place. Firm Industry Ratios Quick ratio Comment -Select- 1.0 Current ratio -Select- 2.7 7.0 Inventory turnover -Select- Days sales outstanding days 32 days -Select- Fixed assets turnover -Select- 13.0 2.6 Total assets turnover -Select- Return on assets 9.1% -Select- Return on equity 18.2% -Select- Profit margin on sales 3.5% -Select- 21.0% -Select- Debt ratio Liabilities-to-assets EPS 50.0% -Select- $4.71 n.a. Stock Price $23.57 n.a P/E ratio 6.0 | -Select- - Price/Cash flow ratio 3.5 -Select- 4 Market/Book ratio 3.5 -Select- A So, the firm appears to be -Select- A managed. Comprenensive Ratio Analysis The Jimenez Corporation's forecasted 2019 financial statements follow, along with some industry average ratios. Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2019 Assets Cash Accounts receivable Inventories $ 72,000 439,000 894,000 $1,405,000 431,000 $1,836,000 Total current assets Fixed assets Total assets Liabilities and Equity Accounts payable Notes payable $ 332,000 112,000 158,000 Accruals Total current liabilities Long-term debt $ 602,000 403,470 575,820 Common stock 254,710 Retained earnings Total liabilities and equity $1,836,000 Jimenez Corporation: Forecasted Income Statement for 2019 Sales Cost of goods sold (excluding depreciation) Selling, general, and administrative expenses Depreciation $4,290,000 3,580,000 379,320 150,000 Earnings before taxes (EBT) $ 180,680 Taxe Questions Navigation Menu 72,272 Net income $ 108,408 Jimenez Corporation: Per Share Data for 2019 EPS 4.71 0.95 Cash dividends per share P/E ratio Market price (average) Number of shares outstanding 5.0 23.57 23,000 1.0 2.7 Industry Ratiosa Quick ratio Current ratio Inventory turnoverb Days sales outstanding Fixed assets turnoverb Total assets turnoverb 7.0 32.0 days 13.0 2.6 Return on assets Return on equity Profit margin on sales 9.1 % 18.2 % 3.5 % 21.0 % Debt-to-assets ratio Liabilities-to-assets ratio 50.0 % P/E ratio 6.0 Price/Cash flow ratio 3.5 Price/Cash flow ratio Market/Book ratio 3.5 Notes: Industry average ratios have been stable for the past 4 years. Based on year-end balance sheet figures. Calculation is based on a 365-day year. Calculate Jimenez's 2019 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. Do not round intermediate calculation. Round DSO to the nearest whole number. Round the other ratios to one decimal place. Firm Industry Ratios Quick ratio Comment -Select- 1.0 Current ratio -Select- 2.7 7.0 Inventory turnover -Select- Days sales outstanding days 32 days -Select- Fixed assets turnover -Select- 13.0 2.6 Total assets turnover -Select- Return on assets 9.1% -Select- Return on equity 18.2% -Select- Profit margin on sales 3.5% -Select- 21.0% -Select- Debt ratio Liabilities-to-assets EPS 50.0% -Select- $4.71 n.a. Stock Price $23.57 n.a P/E ratio 6.0 | -Select- - Price/Cash flow ratio 3.5 -Select- 4 Market/Book ratio 3.5 -Select- A So, the firm appears to be -Select- A managed