Cross-sectional ratio analysis

Use financial statements

My Manufacturing Company Income Statement for the Year Ended December 31, 2021

Sales revenue $602,000

Less: Cost of goods sold $459,000

Gross profits $143,000

Less: Operating expenses5

General and administrative expenses $29,700

Depreciation expense $30,500

Total operating expense $60,200

Operating profits $82,800

Less: Interest expense $9,500

Net profits before taxes $73,300

Less: Taxes $14,500

Net profits after taxes (earnings available for common stockholders)$58,800

Earnings per share (EPS) $2.85

My Manufacturing Company Balance Sheet December 31, 2021 Assets Cash $15,400 Marketable securities $6,800 Accounts receivable $34,500 Inventories $82,100 Total current assets $138,800 Net fixed assets $265,000 Total assets $403,800 Liabilities and Stockholders' Equity Accounts payable $56,600 Notes payable $12,600 Accruals $4,500 Total current liabilities $73,700 Long-term debt $147,500 Common stock equity (20,000 shares outstanding) $109,900 Retained earnings $72,700 Total stockholders' equity $182,600 Total liabilities and stockholders' equity $403,800

for My Manufacturing Company for the year ended December 31, 2021, along with the industry average ratios to:

Ratio Industry average, 2021 Current ratio 2.46 Quick ratio 0.92 Inventory turnover* 4.44 times Average collection period* 36.1 days Total asset turnover 1.04 Debt ratio 0.26 Times interest earned 13.1 Gross profit margin 0.204 Operating profit margin 0.141 Net profit margin 0.124 Return on total assets (ROA) 0.131 Return on common equity (ROE) 0.254 Earnings per share (EPS) $3.81 *Based on a 365-day year and on end-of-year figures.

a. Prepare and interpret a complete ratio analysis of the firm's 2021 operations.

ratios in decimal format.