Financial statement analysis The transitants of Zach indstries for the year ended December 31, 2015. flow Uw the radialnet to complete the following blessure the industry averages given in the table are applicable for both 2014 and 2015 b. Anayech Industrial condition as it is related to () luty activity (3) det. (probity, and market Summarecomany's overall financial condition The gross profit marginis 334 Round to be decimal place The nel grotmargin 34 und to the map The roumons 3. Round the decimal place) The return on common equity is 97% (Round to one decimal place) The mattok value 0.00 Round to two decimal places) 1. Analyse Zach industries and condition as it is related to (1) quidy, activity (3) debt. (4) profitability and market Summare company's overal financial condition Select all the answers that apply) A Liquidity Zach industries liquidity position has deteriorated from 2014 to 2015 and is interior to the industry average. The firm may not be able to stay honom obligations as they come due B. Activity: Zach Industries' ability to converts into cash has deteriorated from 2014 2015. Examination to the cause of the 205-day reson the rage collection periode worried Inventory turnover has to decreased for the period under review and is compared to industry. The may be holding the entry e. Det i det position has improved since 2014 and is below average achinabilly to services parents has delarred and is below they are OD Profitability Athough Zach Industries' gross profit marginbow its industry average indicating cost of goods sold, the firm has a super margin in comparison to everage. The firm has lower than average operating expenses. The firm has a seremoniement and return on guity in comparison to the industry and shows and trend DE Marketch industries increase in their mana prove to book value per share indicates the performance has been pred more pollen 2015 in 2014 with her than the in Financial statement analysis The financial statements of Zach Industries for the year ended December 31, 2015, follow m a. Use the financial statements to complete the following table Assume the industry averages given in the table are applicable for both 2014 and 2015. 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 overall financial condition The net profit margin is 34% (Round to one decimal place.) The return on assets is 3.7% (Round to one decimal place) The return on common equity is 9.7%. (Round to one decimal place) The marketbook value is 0.99. (Round to two decimal places) 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 overall financial condition. (Select it the answers that apply.) DA Liquidity: Zach Industries liquidity position has deteriorated from 2014 to 2015 and is inferior to the industry average. The firm may not be able to satisfy short-term obligations as they come due B. Activity: Zach Industries' ability to convert assets into cash has deteriorated from 2014 to 2015. Examination into the cause of the 20.5-day increase in the average collection period is warranted Inventory tumover has also decreased for the period under review and is fair compared to industry. The firm may be holding slightly excessive inventory C. Debt: Zach Industries' debt position has improved since 2014 and is below average. Zach Industries' ability to service interest payments has deteriorated and is below the industry average OD. Profitability: Although Zach Industries' gross profit margin is below its industry average, indicating high cost of goods sold, the firm has a superior net profit margin in comparison to average. The firm has lower than average operating expenses. The firm has a superior return on investment and return on equity in comparison to the industry and shows an upward trend. DE Market: Zach Industries'increase in their market price relative to their book value per share indicates that the firm's performance has been interpreted as more positive in 2015 than in 2014 and it is a little higher than the industry $159,600 106,300 $53,300 Zach Industries Income Statement for the Year Ended December, 31, 2015 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes $16,000 10,500 960 10,300 $37,760 $15,540 5,700 $9,840 4,400 $5,440 Zach Industries Balance Sheet December 31, 2015 Assets Cash $450 Marketable securities 960 Accounts receivable 25,100 Inventories 45,000 Total current assets $71,510 Land $25,600 Buildings and equipment 89,500 Less: Accumulated depreciation 38,400 Net fixed assets $76,700 Total assets $ 148,210 Liabilities and Stockholders' Equity Accounts payable $21,900 Notes payable 47,200 Total current liabilities $69,100 Long-term debt $22,980 Common stock* $32,000 Retained earnings $24,130 Total liabilities and stockholders' equity $148,210 *The firm's 2 600 outstanding shares of common stock closed Long-term debt Common stock* $32,000 Retained earnings $24,130 Total liabilities and stockholders' equity $148,210 *The firm's 2,600 outstanding shares of common stock closed 2015 at a price of $22 per share. Financial statement analysis The transitants of Zach indstries for the year ended December 31, 2015. flow Uw the radialnet to complete the following blessure the industry averages given in the table are applicable for both 2014 and 2015 b. Anayech Industrial condition as it is related to () luty activity (3) det. (probity, and market Summarecomany's overall financial condition The gross profit marginis 334 Round to be decimal place The nel grotmargin 34 und to the map The roumons 3. Round the decimal place) The return on common equity is 97% (Round to one decimal place) The mattok value 0.00 Round to two decimal places) 1. Analyse Zach industries and condition as it is related to (1) quidy, activity (3) debt. (4) profitability and market Summare company's overal financial condition Select all the answers that apply) A Liquidity Zach industries liquidity position has deteriorated from 2014 to 2015 and is interior to the industry average. The firm may not be able to stay honom obligations as they come due B. Activity: Zach Industries' ability to converts into cash has deteriorated from 2014 2015. Examination to the cause of the 205-day reson the rage collection periode worried Inventory turnover has to decreased for the period under review and is compared to industry. The may be holding the entry e. Det i det position has improved since 2014 and is below average achinabilly to services parents has delarred and is below they are OD Profitability Athough Zach Industries' gross profit marginbow its industry average indicating cost of goods sold, the firm has a super margin in comparison to everage. The firm has lower than average operating expenses. The firm has a seremoniement and return on guity in comparison to the industry and shows and trend DE Marketch industries increase in their mana prove to book value per share indicates the performance has been pred more pollen 2015 in 2014 with her than the in Financial statement analysis The financial statements of Zach Industries for the year ended December 31, 2015, follow m a. Use the financial statements to complete the following table Assume the industry averages given in the table are applicable for both 2014 and 2015. 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 overall financial condition The net profit margin is 34% (Round to one decimal place.) The return on assets is 3.7% (Round to one decimal place) The return on common equity is 9.7%. (Round to one decimal place) The marketbook value is 0.99. (Round to two decimal places) 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 overall financial condition. (Select it the answers that apply.) DA Liquidity: Zach Industries liquidity position has deteriorated from 2014 to 2015 and is inferior to the industry average. The firm may not be able to satisfy short-term obligations as they come due B. Activity: Zach Industries' ability to convert assets into cash has deteriorated from 2014 to 2015. Examination into the cause of the 20.5-day increase in the average collection period is warranted Inventory tumover has also decreased for the period under review and is fair compared to industry. The firm may be holding slightly excessive inventory C. Debt: Zach Industries' debt position has improved since 2014 and is below average. Zach Industries' ability to service interest payments has deteriorated and is below the industry average OD. Profitability: Although Zach Industries' gross profit margin is below its industry average, indicating high cost of goods sold, the firm has a superior net profit margin in comparison to average. The firm has lower than average operating expenses. The firm has a superior return on investment and return on equity in comparison to the industry and shows an upward trend. DE Market: Zach Industries'increase in their market price relative to their book value per share indicates that the firm's performance has been interpreted as more positive in 2015 than in 2014 and it is a little higher than the industry $159,600 106,300 $53,300 Zach Industries Income Statement for the Year Ended December, 31, 2015 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes $16,000 10,500 960 10,300 $37,760 $15,540 5,700 $9,840 4,400 $5,440 Zach Industries Balance Sheet December 31, 2015 Assets Cash $450 Marketable securities 960 Accounts receivable 25,100 Inventories 45,000 Total current assets $71,510 Land $25,600 Buildings and equipment 89,500 Less: Accumulated depreciation 38,400 Net fixed assets $76,700 Total assets $ 148,210 Liabilities and Stockholders' Equity Accounts payable $21,900 Notes payable 47,200 Total current liabilities $69,100 Long-term debt $22,980 Common stock* $32,000 Retained earnings $24,130 Total liabilities and stockholders' equity $148,210 *The firm's 2 600 outstanding shares of common stock closed Long-term debt Common stock* $32,000 Retained earnings $24,130 Total liabilities and stockholders' equity $148,210 *The firm's 2,600 outstanding shares of common stock closed 2015 at a price of $22 per share