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%

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.