Financial statement analysis The financial statements of Zach Industries for the year ended December 31, 2022, follow E:E. a. Use the financial statements to complete the following table.Assume the industry averages given in the table are applicable for both 2021 and 2022. b. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's pverall financial condition. a. The current ratio is (Round to two decimal placs.) \begin{tabular}{lr} \hline \multicolumn{2}{c}{\begin{tabular}{c} Zach Indstries Income Statement \\ for the Year Ended December, 31, 2022 \end{tabular}} \\ \hline Sales revenue & $160,500 \\ Less: Cost of goods sold & 106,200 \\ Gross profits & $54,300 \\ Less: Operating expenses & \\ Selling expense & $15,800 \\ General and administrative expenses & 10,100 \\ Lease expense & 1,020 \\ Depreciation expense & 10,100 \\ Total operating expense & $37,020 \\ \hline Operating profits & $17,280 \\ Less: Interest expense & 6,200 \\ Net profits before taxes & $11,080 \\ Less: Taxes & 4,380 \\ Net profits after taxes & $6,700 \\ \hline \end{tabular} adsheet.) Liabilities and Stockholders' Equity \begin{tabular}{lr} \hline Accounts payable & $21,900 \\ Notes payable & 46,900 \\ \hline Total current liabilities & $68,800 \\ Long-term debt & $22,950 \\ Common stock & $32,000 \\ Retained earnings & $27,210 \\ \hline Total liabilities and stockholders' equity & $150,960 \\ \hline \end{tabular} *The firm's 2,800 outstanding shares of common stock closed 2022 at a price of $25 per share. \begin{tabular}{|c|c|c|c|} \hline Ratio & Industry average & Actual 2021 & Actual 2022 \\ \hline Current ratio & 1.82 & 1.86 & \\ \hline Quick ratio & 0.71 & 0.79 & \\ \hline Inventory turnover" & 2.48 & 2.57 & \\ \hline Average collection period & 38.5 days & 37.5 days & \\ \hline Debt ratio & 64.5% & 66.5% & \\ \hline Times interest earned ratio & 3.8 & 4.0 & \\ \hline Gross profit margin & 38% & 40% & \\ \hline Net profit margin & 3.6% & 3.7% & \\ \hline Return on total assets & 4.0% & 4.0% & \\ \hline Return on common equity & 9.5% & 8.0% & \\ \hline Market/book ratio & 1.0 & 1.1 & \\ \hline \end{tabular} "Based on a 365-day year and end-of-year figures