D) Using the following 2017 industry averages, evaluate Sweet Dreams Corp.s financial situation.

Can you help me out with part D, as I honestly do not even know where to start.

CHAPTER 3: FINANCIAL STATEMENT ANALYSIS TOOLS 1. Sweet Dreams Corp. has prepared the following financial statements: Sweet Dreams Corp. Sweet Dreams Corp. Income Statement Balance Sheet For the Year Ended Dec. 31 2017 As of Dec. 31 2017 2017 2016 Assets 2017 Sales 3,074,000 2,567,000 Cash 431,000 Cost of Goods Sold 2,088,000 1,711,000 Accounts Receivable 503,000 Gross Profit 986,000 856,000 Inventories 289,000 Selling and G&A Expenses 294,000 295,000 Total Current Assets 1,223,000 Fixed Expenses 35,000 35,000 Gross Fixed Assets 4,669,000 Depreciation Expense 239,000 223,000 Accumulated Depreciation 2,295,000 EBIT 418,000 303,000 Net Fixed Assets 2,374,000 Interest Expense 93,000 91.000 Total Assets 3,597,000 Earnings Before Taxes 325,000 212,000 Liabilities and Owners' Equity Taxes 94,000 64.000 Accounts Payable 382.000 Net Income 231,000 148.000 Short-term Notes Payable 79,000 Accrued Expenses 159,000 Total Current Liabilities 620.000 Long-term Debt 1,023,000 Total Liabilities 1,643,000 Common Stock 819,000 Retained Earnings 1,135,000 Total Shareholder's Equity 1,954,000 Total Liabilities and Owners' Equity 3,597,000 2016 339,000 365,000 300,000 1,004,000 4,322,000 2.056,000 2,266,000 3,270,000 270.000 99,000 114,000 483,000 967.000 1,450,000 808,000 1,012,000 1.820.000 3,270,000 a) Set up a worksheet similar to the one in Exhibit 3-6, page 92, and calculate all of the ratios for Sweet Dreams Corp. b) Verify the change in 2017 Sweet Dreams Corp's ROE using the Du Pont method. c) Using the Altman's model for privately held firms and public ones, calculate the Z-score for Sweet Dreams Corp. Assume that the market value of Sweet Dreams Corp. is $1,200,000. d) Using the following 2017 industry averages, evaluate Sweet Dreams Corp.'s financial situation. Ratio Current Ratio Quick Ratio Inventory Turnover Ratio Accounts Receivable Turnover Ratio Average Collection Period Fixed Asset Turnover Total Asset Turnover Total Debt Ratio Long-Term Debt Ratio LTD to Total Capitalization Value 2.50x 0.60x 6.50x 8.00x 40.00 days 2.00x 2.00x 50.00% 20.00% 30.00% Ratio Debt to Equity Long-Term Debt to Equity Times Interest Earned Cash Coverage Ratio Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Total Assets Return on Equity Return on Common Equity Value 0.90x 40.00% 2.50x 3.50x 20.00% 7.00% 5.00% 5.00% 8.00% 10.00%