Consolidated Financials

Income Statement Balance Sheet

$20242023$ Assets $20242023$

Net sales $27,20028,759$ Cash and securities $425454$

Cost of good sold $22,84825,124$ Accounts receivable $1,1901,109$

Depreciation $2,4482,589$ Inventories $680640$

EBIT $1,9041,046$ Total current assets $2,2952,203$

Interest expense $115122$ Net PPE $6,2056,042$

Tax $(30\%)537278$ Total assets $8,5008,245$

Net Income $1,252646$ Liabilities and Owners' Equity

Accounts payable $595601$

Short$-$term notes $595618$

Total current liabilities $1,1901,219$

Long$-$term debt $9521,015$

Common stock $1,9071,382$

Retained earnings $4,4514,629$

Total liabilities and owners$$ equity $8,5008,245$

You have been asked to analyze a firm in the consumer staples industry. The firm$$s major financial statements are listed above. The industry quick ratio is $1\mathrm{.}76,$ the industry cash coverage ratio is $48\mathrm{.}44,$ and the industry average days in inventory is $8\mathrm{.}36.$ Which of the following statements is true for the firm?

The firm has a stronger ability to meet short$-$term liabilities than the industry

The firm is in a worse position to service their debt than the industry

The firm sells through their inventory faster than the industry

Two choices, A and C$,$ are correct

The three A$-$B$-$C choices are all correct