(Financial statement analysis) Using the following financial statements for Pamplin, Inc: a. Compute the following ratios for both 2012 and 2013 using the financial statements above: b. Compare Pamplin's financial ratios to the industry norms listed above and assess each of the following attributes of the firm's financial condition: liquidity, capital structure, asset management efficiency, and profitability. Pamplin, Inc. Balance Sheets \begin{tabular}{lrr} Assets & \multicolumn{2}{r}{2013} \\ Cash & $196 & $149 \\ Accounts receivable & 454 & 427 \\ Inventories & 548 & 629 \\ Current assets & $1,198 & $1,205 \\ Plant and equipment & 2,250 & 2,590 \\ Less: Accumulated depreciation & (950) & (1,250) \\ Net plant and equipment & $1,300 & $1,340 \\ Total assets & $2,498 & $2,545 \end{tabular} Liabilities and Owners' Equity Accounts payable Notes payable-current ( 9% interest) Current liabilities Bonds (8.33\% interest) 2012 2013 Owners' equity Common stock Paid-in capital \begin{tabular}{rr} 0 & 155 \\ \hline$199 & $305 \\ $595 & $595 \end{tabular} Retained earnings Common equity Total liabilities and owners' equity \begin{tabular}{rr} $299 & $299 \\ 600 & 600 \\ 805 & 746 \\ \hline$1,704 & $1,645 \\ \hline$2,498 & $2,545 \end{tabular} Pamplin, Inc. \begin{tabular}{lc} & Industry Norm \\ Current ratio & 5.00 \\ Acid-test (quick) ratio & 3.00 \\ Inventory turnover & 2.20 \\ Average collection period & 90.0 \\ Debt ratio & 33.0% \\ Times interest earned & 7.00 \\ Total asset turnover & 0.75 \\ Fixed asset turnover & 1.00 \\ Operating profit margin & 20.0% \\ Return on equity & 9.0% \\ \hline \end{tabular}