e financial state omplete the foll I condition as it two decimal p o decimal plac nd to two decir days. (Round ne decimal pla (Round to c ound to one de nd to one deci nd to one deci Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Zach Industries Income Statement for the Year Ended December, 31, 2022 Sales revenue $159,800 105,600 Less: Cost of goods sold Gross profits $54,200 Less: Operating expenses Selling expense $16,300 General and administrative expenses 10,000 Lease expense 1,040 Depreciation expense 10,000 Total operating expense $37,340 $16,860 6,500 $10,360 4,390 $5,970 Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes Print Done Xs) possible oint(s) poss cial condition al s the on a ecim hal p o de (Ro imal und one ne d ne d - Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Ratio Industry average Actual 2021 Actual 2022 Current ratio 1.81 1.85 Quick ratio 0.70 0.78 Inventory turnover* 2.48 2.57 Average collection period 36.9 days 35.9 days Debt ratio 64.9% 66.9% Times interest earned ratio 3.6 3.8 Gross profit margin 38% 40% Net profit margin 3.1% 3.2% Return on total assets 3.6% 3.6% Return on common equity 8.5% 7.0% Market/book ratio 1.4 1.5 *Based on a 365-day year and end-of-year figures. Print Done X con Financial statement analysis. The financial statements of Zach Industries for the year ended December 31, 2022, follow Assume the industry averages given in the table are applicable a. Use the financial statements to complete the following table for both 2021 and 2022. b. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's overall financial condition. a. The current ratio is (Round to two decimal places.) The quick ratio is (Round to two decimal places.) The inventory tumover is. (Round to two decimal places.) The average collection period is days. (Round to one decimal place.) The debt ratio is%. (Round to one decimal place.) Financial statement analysis The financial statements of Zach Industries for the year ended December 31, 2022, follow a. Use the financial statements to complete the following table. Assume the industry averages given in the table are applicable for both 2021 and 2022. b. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's overall financial condition. The times interest earned ratio is (Round to one decimal place.) The gross profit margin is%. (Round to one decimal place.) The net profit margin is%. (Round to one decimal place.) The return on assets is%. (Round to one decimal place) The return on common equity is%. (Round to one decimal place.) Financial statement analysis. This financial statements of Zach Industries for the year ended December 31, 2022 follow m The marketbook value is (Round to two decimal places) b. Analyze Zach Industries financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's overall financial condition (Select all the answers that apply) A Liquidity: Zach Industries' liquidity position has deteriorated from 2021 to 2022 and is inferior to the industry average. The firm may not be able to satisfy short-term obligations is they come due DB Activity: Zach Industries' ability to convert assets into cash has deteriorated from 2021 to 2022. Examination into the cause of the 20.5-day increase in the average collection period is wamarded, Inventory tumover has also decreased for the period under review and is fair compared to industry. The firm may be holding slightly excessive inventory C. Debt Zach Industries' debt position has improved since 2021 and is below average. Zach Industries' ability to service interest payments has deteriorated and is below the industry average. D. Profitability: Although Zach industries' gross profit margin is below its industry average, indicating high cost of goods sold, the firm has a superior net profit margin in comparison to average. The firm has lower than average operating expenses. The firm has a superior retum on investment and return on equity in comparison to the industry and shows an upward Market Zach Industries increase in their market price relative to their book value per share indicates that the firm's performance has been interpreted as more positive in 2022 than in e financial state omplete the foll I condition as it two decimal p o decimal plac nd to two decir days. (Round ne decimal pla (Round to c ound to one de nd to one deci nd to one deci Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Zach Industries Income Statement for the Year Ended December, 31, 2022 Sales revenue $159,800 105,600 Less: Cost of goods sold Gross profits $54,200 Less: Operating expenses Selling expense $16,300 General and administrative expenses 10,000 Lease expense 1,040 Depreciation expense 10,000 Total operating expense $37,340 $16,860 6,500 $10,360 4,390 $5,970 Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes Print Done Xs) possible oint(s) poss cial condition al s the on a ecim hal p o de (Ro imal und one ne d ne d - Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Ratio Industry average Actual 2021 Actual 2022 Current ratio 1.81 1.85 Quick ratio 0.70 0.78 Inventory turnover* 2.48 2.57 Average collection period 36.9 days 35.9 days Debt ratio 64.9% 66.9% Times interest earned ratio 3.6 3.8 Gross profit margin 38% 40% Net profit margin 3.1% 3.2% Return on total assets 3.6% 3.6% Return on common equity 8.5% 7.0% Market/book ratio 1.4 1.5 *Based on a 365-day year and end-of-year figures. Print Done X con Financial statement analysis. The financial statements of Zach Industries for the year ended December 31, 2022, follow Assume the industry averages given in the table are applicable a. Use the financial statements to complete the following table for both 2021 and 2022. b. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's overall financial condition. a. The current ratio is (Round to two decimal places.) The quick ratio is (Round to two decimal places.) The inventory tumover is. (Round to two decimal places.) The average collection period is days. (Round to one decimal place.) The debt ratio is%. (Round to one decimal place.) Financial statement analysis The financial statements of Zach Industries for the year ended December 31, 2022, follow a. Use the financial statements to complete the following table. Assume the industry averages given in the table are applicable for both 2021 and 2022. b. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's overall financial condition. The times interest earned ratio is (Round to one decimal place.) The gross profit margin is%. (Round to one decimal place.) The net profit margin is%. (Round to one decimal place.) The return on assets is%. (Round to one decimal place) The return on common equity is%. (Round to one decimal place.) Financial statement analysis. This financial statements of Zach Industries for the year ended December 31, 2022 follow m The marketbook value is (Round to two decimal places) b. Analyze Zach Industries financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's overall financial condition (Select all the answers that apply) A Liquidity: Zach Industries' liquidity position has deteriorated from 2021 to 2022 and is inferior to the industry average. The firm may not be able to satisfy short-term obligations is they come due DB Activity: Zach Industries' ability to convert assets into cash has deteriorated from 2021 to 2022. Examination into the cause of the 20.5-day increase in the average collection period is wamarded, Inventory tumover has also decreased for the period under review and is fair compared to industry. The firm may be holding slightly excessive inventory C. Debt Zach Industries' debt position has improved since 2021 and is below average. Zach Industries' ability to service interest payments has deteriorated and is below the industry average. D. Profitability: Although Zach industries' gross profit margin is below its industry average, indicating high cost of goods sold, the firm has a superior net profit margin in comparison to average. The firm has lower than average operating expenses. The firm has a superior retum on investment and return on equity in comparison to the industry and shows an upward Market Zach Industries increase in their market price relative to their book value per share indicates that the firm's performance has been interpreted as more positive in 2022 than in
