EAST COAST YACHTS 2022 Income Statement Sales Cost of goods sold Other expenses Depreciation $185,250,000 Earnings before interest and taxes (EBIT) Interest 136,125,000 22,169,000 Taxable income Taxes (21\%) Net income 3,688,860 Dividends $6,340,000 Additions to retained earnings 7,537,140 EAST COAST YACHTS Balance Sheet as of December 31, 2022 Assets Liabilities and Equity Current assets Current liabilities Cash $2,891,400 Accounts payable \$ 5,582,200 Accounts receivable 5,201,5005,832,100NotesTotal 12,621,500 Inventory Total $13,925,000 Fixed assets Long-term debt \$ 32,100,000 Net plant and equipment $89,303,400 Shareholders' equity Common stock \$ $,912,000 Retained earnings 48,012,700 Total equity \$ 52,924,700 Total assets $103,228,400 Total liabilities and equity $103,228,400 Yacht Industry Ratios To get Dan started with his analyses, Larissa has provided the financial statements. Dan has gathered the industry ratios for the yacht manufacturing industry. 1. Calculate all of the ratios listed in the industry table for East Coast Yachts. 2. Compare the performance of East Coast Yachts to the industry as a whole. For each ratio, comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an inventory ratio calculated as inventory divided by current liabilities. How do you interpret this ratio? How does East Coast Yachts compare to the industry average