Financial Analysis for Managers PART I. ARTICLE ANALYSIS (5 points) - Give your analysis of assigned article supported by overall financial concept(s), or principle(s). Your analysis should propose a recommended course of action where appropriate. ar tieki Ventose corpeted vs Paste Equity PART II. Answer each of the following problems as accurately and concisely as possible. Be sure to show and work and clearly indicate your answers GOOD LUCK!! 2. (15 points) Perform a ratio analysis for the years 19x1 and 1970 using the following financial statements, and answer the subsequent questions Firm x Balance Sheet as of 12/31/XX 1970 Assets 19X1 $ 631 953 201 4655 5,345 $ 6,978 4.535 $11.613 $6.459 19X 1930 Current assets Cash and cash equivalents Accounts receivable Tnventory Total current assets Property and Equipment tatal assets Liabilities Current liabilities Accounts payable Accrued expenses Rentals owed Taxes due Total current liabilities Long-term debt Total liabilities Equity Tatal Liabilities mit S 783 490 241 B6 $ 1,600 3,054 $ 4,654 685 496 92 14 $ 1,362 1,926 6.959 4533 $ 559 Income Statement for the Fiscal Year Ended: 12/31/1 12/31/X0 Sales $ 23,117 $ 18,428 Cost of goods sold 13.174 10.530 Gross profit 9,943 7,798 Selling & administrative expenses 2.460 5.976 Earnings before interest & taxes 2,483 1,822 Interest 317 177 Taxes 2,029 698 Net income 1132 947 Fill in the table presented. Given the following industry averages, are any weaknesses revealed in the ratio analysis? Ind. Avg. 19X1 19XO current ratio 4:1 Quick ratio 0.4:1 Average collection period 3 days Inventory turnover Operating profit margin 11 Net profit margin Return on asset 103 Return on equity 22 Debt ratio Interest coverage 5X . Evaluate the firm's performance on both time series and cross section basis over the 1980 - 1981 period