Low Corporations forecasted 2022 financial statements follow, along with some industry average ratios. Calculate Lows 2022 forecasted ratios, compare them with the industry average data, and comment briefly on Lows projected strengths and weaknesses.

Low Corporation: Forecasted Balance Sheet as at December 31, 2022

Cash	$72,000
Accounts receivable	439,000
Inventories	894,000
Total current assets	1,405,000
Fixed assets	431,000
Total assets	$ 1,836,000
Accounts payable	$ 332,000
Notes payable	100,000
Accruals	170,000
Total current liabilities	602,000
Long-term debt	404,290
Common stock	575,000
Retained earnings	254,710
Total liabilities and equity	$ 1,836,000

Low Corporation: Forecasted Income Statement for 2022

Sales	$4,290,000
Cost of goods sold	3,580,000
Selling, general and administrative expenses	525,456
Earnings before interest and taxes (EBIT)	184,544
Interest expense	40,000
Earnings before taxes (EBT)	144,544
Taxes (25%)	36,136
Net income	$108,408

Low Corporation: Per Share Data for 2022

EPS	$4.71
Cash dividends per share	$0.95
P/E ratio	5.0
Market price (average)	$23.57
Number of shares outstanding	23,000

Ratio	Low Corp.	Industry Averageaa
Quick ratio		1.0
Current ratio		2.7
Inventory turnoverbb		7.0
Days sales outstandingcc	days	32.0 days
Fixed assets turnoverbb		13.0
Total assets turnoverbb		2.6
Return on assets	%	9.1%
Return on equity	%	18.2%
Profit margin on sales	%	3.5%
Debt-to-asset ratio	%	21.0%
P/E ratio		6.0
Market/Book ratio		3.5

Notes:

aaIndustry average ratios have been stable for the past 4 years.

bbBased on year-end balance sheet figures.

ccCalculation is based on a 365-day year.