Exercise $1$

The ABC company, a manufacturer and wholesaler of high$-$quality high$-$tech equipment has been experiencing low

profitability in recent years. As a result, the board of directors has replaced the president of the firm with a new president

who has asked you to make an analysis of the firms' financial position using the below ratio.

The most recent industry average ratios, and $AB{C}^{\text{'}}\text{'}$s financial statement, are as follows:

INDUSTRY AVERAGE RATIOS

ABC company: Balance Sheet as of December ${31}^{st}2020($Millions of Dollars$)$

ABC company: Income Statement as of December $312020($Millions of Dollars$)$

a$)$ Calculate the above$-$mentioned ratios useful in this analysis.

b$)$ Which specific accounts seem to be most out of line in relation to other firms in the industry?