Equity RE Total equity Total debt and equity 20,542,000 4.772.000 25,315,000 50,630,000 Total assets 50,630,000 | Cash AR XYZ is the largest retailer of diving equipment in Aqaba. XYZ was established in 2010 & experienced high growth rates since establishment. XYZ's administration is located in Amman with a branch in Aqaba. Aqaba was chosen because of its geographic location on the Red Sea and it is targeted by Jordanians and international tourists from all over the world. XYZ's owners are consisted of two friends, Ali & Khaled. While financially successful, substantial investments were needed to facilitate company's growth. two owners' target to expand the business into Egypt and neighboring countries, to enhance their market share. Obviously, the cash flow implications would be substantial. Before embarking into this potentially very lucrative but risky business endeavor, they would like to get a clear picture about the company's current financial situation & its strengths & weaknesses, to determine whether it is well suited for their ambitious plan. you are hired for your financial expertise to conduct a thorough analysis of the company's financial ratios. 1) Compute Southern Professionals' financial ratios for years 2019 and 2020. Required ratios are: (Current, Quick, and Cash Ratios; Total Debt Ratio, Debt Equity Ratio, Equity Multiplier, Long-term Debt Ratio, Times Interest Earned, and Cash Coverage Ratio; Days' sales in inventory, Days' sales in receivables, NWC turnover, Fixed asset turnover, and Total asset turnover; DuPont Analysis).2)Based on your ratios analysis above, briefly interpret the changes between (2019 & 2020) in the company's ratios related to liquidity, financial leverage, asset management and profitability ratios. 3)Using the financial ratios index for the industry (Industry Index 2020) as a benchmark, determine Southern Professionals' liquidity, financial leverage, asset management and profitability ratios. Briefly interpret your results for only 2020. Balance sheet 31/12/2019 in US$ 3,236,000 Accounts payable 2,139,000 Notes payable 1,865,000 1,123,000 Inventory 2,598,000 Current liabilities 2,988,000 Current assets 7,973,000 Long-term debt 14,995,000 Net fixed assets 34,950,000 Total debt 17,923,000 Equity Income Statement in US $ 31/12/2020 RE 22,517,000 2.483.000 25,000,000 Total equity Total assets 47,923.000 Total debt and equity 42,923,000 Sales Cost of Goods sold Selling, General & Administrative Depreciation EBIT 55,000,000 37 185,000 8,250,000 3,857,000 5,708,000 1,732,000 3,976,000 1,113,000 2,863,000 Upper Quartile 1.89 0.62 0.39 Interest paid Taxable income Tax 1.38 Net Income 10.89 Dividends Addition to retained Earnings 573,000 2,290,000 Current ratio Quick ratio Cash ratio Total asset turnover Inventory turnover Receivable turnover Total debt ratio Debt-equity ratio Equity multiplier Times interest earned Cash coverage ratio Profit margin in % Return on assets in % Return on equity in Industry Index 31/12/2020 Lower Quartile Mean 0.52 1.43 0.21 0.38 0.08 0.21 0.68 0.85 4.89 6.15 6.27 9.82 0.44 0.52 0.79 1.08 1.79 2.0B 5.18 8.06 5.84 8.43 4.05 6.98 6.05 10.53 9.93 16.54 14.11 0.61 1.56 2.56 9.83 10.27 9.87 Balance sheet 31/12/2020 in US $ Cash A/R 5,712,000 2,355,000 Accounts payable Notes payable 2,310,000 1,350,000 13.21 26.15 Inventory 3,998,000 Current liabilities 3,660,000 Current assets 12,065,000 Long-term debt 21.655,000 Net fixed assets 38,565,000 Total debt 25,315,000