First Tube Inc. is considering a process improvement that would increase its sales by 28%. This investment would be financed by a short-term note payable of $66,750 from the Bank of First Citizens. As the finance manager at First Tube Inc., you have been asked to prepare pro forma financial statements so that your Director of Finance can have a better look at the numbers.

Pro Forma Balance Sheets at Dec. 31, 20XX

20XX 20XW

Current assets

Cash $1,300 $20,000

Accounts receivable 36,000 28,000

Inventories 101,000 64,500

Total current assets 138,300 112,500

Land 57,700 44,500

Buildings and equipment 222,000 155,000

Less: accumulated amortization -85,000 -62,000

Total assets $333,000 $250,000

Current liabilities

Accounts payable $48,700 $23,250

Notes payable 104,500 37,750

Total current liabilities 153,200 61,000

Long term debt/Bonds Payable 51,000 64,000

Common stock 70,000 70,000

Retained earnings 58,730 55,000

Total liabilities and equity $332,930 $250,000

Provide a Ratio Analysis of First Tube Inc.s performance compared to industry averages for 20XX. Provide a calculated answer for each of the ratios listed and comment on the firms performance better than industry, worse than industry, or same as an industry, as well, as what the ratio may indicate for the firm.

The chart below, Industry Ratios Averages, " provides the industry averages.