financial management*

The balance sheet and income statement for J. P. RObard Manufatcuring Company are as follows: J.P. Robard Manufacturing Company Balance Sheet as at 31 December 2018 Item ($ in thousands) Cash 500 Account receivable 2,000 Inventory 1,000 Total current assets 3,500 Net fixed assets 4,500 Total assets 8,000 Accounts payable 1,100 Accrued expenses 600 Short-term notes payable 300 Total curernt liabilities 2,000 Long-term debt 2,000 Total common equity 4.000 Total liabilities and equity 8,000 J.P. Robard Manufacturing Company Income Statement for the Year Ended December 31, 2018 Item (S in thousands) Net sales 8,000 Cost of goods sold 3.300 Gross profit 4,700 Operating expenses (includes $500 depreciation) 3,000 Net operating income 1,700 Interest expense Earnings before taxes 1,333 Income taxes (40%) 533 Net income 367 800 Required: a) Calculate the following ratios from the above informations: i) Profit margin ii) Return on assets iii) Total asset turnover iv) Current ratio b) i. Analyse each ratios as in (a) and compare with industry ratios as stated below. Profit margin = 30% Return on assets = 27% Total asset turnover = 45 times Curent ratio = 5 times ii) Analyse the firm as a whole