Homework Ch 7-Analysis of Financial Statements Comprehensive Ratio Analysis 6. The Jimenez Corporation's forecasted 2019 financial statements follow, along with some industry average ratios: 7. Jimenez Corporation: Forecasted Baiance Sheet as of December 31, 2019 Industry Ratios" \begin{tabular}{lc} Quick ratio Currentratio & 1.0 \\ Inventory turnover b & 2.7 \\ Days sales outstanding c & 7.0 \\ Fixed assets tumover b & 32.0 days \\ Total assets turnover b & 13.0 \\ Return on assets Returnonequity & 2.6 \\ Profit margin on sales Rebt-to-assetsratio & 9.1% \\ Labilities-to-assets ratio & 18.2% \\ \hline \end{tabular} "Iodustry average ratios have been stable for the past 4 years. beased on year-end balance sheet figures. cCalculation is based on a 365 -day year. Calculate Jimenez's 2019 forecasted ratios, compare them with the industry average data, and comment briefly on Jimenez's projected strengths and weaknesses. Assume that there are no changes from the prior period to any of the operating balance sheet accounts. Do not round intermediate calculation. Round DSO to the nearest whole number. Round the other ratios to one decimal place. Ratios Quick ratio Current ratio Inventory turnover Days sales outstanding Fixed assets turnover Total assets turnover Return on assets Return on equity Profit margin on sales Debt ratio Liabilities-to-assets EPS Stock Price P/E ratio Price/Cash flow ratio Market/Book ratio Firm Industry 1.0 2.7 7.0 32 days 13.0 2.6 9.1% 18.2% 3.5% 21.0% 50.0% .a. n.a. 5.0 3.5 3.5 Comment \begin{tabular}{ll} \hline Weak & 6 \\ \hline Weak & 6 \\ \hline Poor & 6 \\ \hline Poor & 6 \\ \hline Poor & 6 \\ \hline Bad & 6 \\ \hline Bad & 6 \\ \hline High & 6 \\ \hline High & 6 \\ \hline \end{tabular} So, the firm appears to be badly managed