Minicase: Ratio Analysis at AutoMed, Inc. Marcy Logan was recently hired by AutoMed, Inc., a robotics developer, to assist the company with its financial planning and to evaluate the company's performance. Marcy graduated from college three years ago with a finance degree. She has been employed in the robotics industry since then as a senior financial analyst. AutoMed was founded 7 years ago by Joseph Smith and Mo Abood. The company has designed, manufactured and sold innovative robots over this period. The company's products have received high reviews for safety and reliability. The company has a niche market in that it sells primarily to long term care facilities located in the Eastern U.S..Each robot is designed to meet the specific needs of the customer. Joseph and Mo have provided the following financial statements. Marcy has gathered the industry ratios for the custom robotics manufacturing industry. AutoMed, Inc 2022 Income statement Sales $38,384,220.00 Cost of goods sold $27,543,786.00 Other expenses $3,785,900.00 Depreciation $2,812,279.50 EBIT $4,242,254.50 Interest $885,098.00 Taxable income $3,357,156.50 Taxes (25%) $839,289.13 Net income $2,517,867.38 Dividends $500,000.00 Add to retail $2,017,867.38 2022 Balance Sheet Assets Current Assets Cash $757,445 Accounts rec 1,239,141 Liabilities and Equity Current Liabilities Accounts Payable $1,883,756 Notes Payable 1,339,553 Inventory 1,907,402 Total current $3,903,988 Total current lia $3,223,309 Long-term debt $11,535,370 Fixed assets Net plant a $24,381,945 Shareholder equity Common stock $510,000 Retained earning 13,017,254 Total equity 13,527,254 Total assets $28,285,933 Total liab. and equ 28,285,933 Custom Robotics Manufacturing Industry Ratios Lower Median Upper Quartile Quartile Current ratio 50 1.43 1.89 Quick ratio .21 .35 62 Cash ratio .08 .21 .39 Total asset turnover .68 .85 1.38 Inventory turnover 4.89 6.15 10.89 Receivables turnover 6.27 9.82 14.11 Total debt ratio .41 .52 .61 Debt-equity ratio .68 1.08 1.56 Equity multiplier 1.68 2.08 2.56 Times interest 5.18 8.06 9.83 earned Cash coverage ratio 5.84 9.41 10.27 Profit margin 4.05% Return on assets 5.10% 7.15% 6.05% 9.53% 13.21% Return on equity 9.93% 15.14% 19.15% 1. Explain what each ratio tells us about a firm. If you use finance terms, such as leverage, explain what the terms mean. Use the "explanation of ratios" document for this step. Make sure all team members agree with the explanations you are submitting. 2. Perform ratio analysis for AutoMed, using Excel formulas. Enter your ratio formulas in the green column to the right of the industry data. Do not compute the ratios outside the spreadsheet and then type them into an Excel spreadsheet. 3. Comment on how AutoMed compares to its industry. You may do this in the yellow column. 4. Does your team have any concerns about this firm? Is AutoMed doing better than the industry in any categories? Prepare a summary paragraph. Add it to your "explanation of ratios" document. Submit your coroadal