MTRON ENTERPRISES MTRON Enterprises is a company specializing in the manufacture of large arcade games and thrill rides, such as roller coasters and ferris wheels. Their customers are businesses such as pool halls, airports, convention centres, tourists sites, amusement parks, etc. Income Statement MTRON Enterprises Jan. 1 to Dec. 31, 2015 Sales Revenues 450,000 Cost of Goods Sold 350,000 Gross Prot (Loss) 100,000 ' Operating Expenses: Marketing Amortization General an Administrative Total Operating Expenses Operating Income hit interest Interest Operating Income bff taxes Taxes (1 0%) Net Income Assets Current Assets: Cash Accounts Receivable Inventories Total Current Assets Fixed Assets Plant and Equipment Land Total Fixed Assets TOTAL ASSETS Balance Sheet MTRON Enterprises Dec. 31, 2015 1,588,000 140,000 10,000 1,718,000 760,000 70,000 830,000 2,548,000 Liabilities Current Liabilities: Accounts Payable Accrued Salaries Total Current Liabilities Long Term Liabilities: Mortgage Long-Term Debt Total Long-Term Liabilities Shareholder's Equity Class A shares (50,000) Retained Earnings Total Shareholder's Equity Total Liabilities 8: SE 34,000 90,000 1 24,000 700,000 150,000 850,000 250,000 1 ,324,000 1,574,000 2,548,000 PERFORMANCE MEASURES Liquidity . Working capital . Current Ratio . Quick ratio . Average collection period . Average payment period . Inventory days . Operating Performance . Inventory Turnover . Accounts Receivable Turnover .Accounts Payable Turnover . Times Interest Earned . Investment Return . Operating Income Margin . Total Asset Turnover . Return on EquityFINANCIAL ANALYSIS LIQUIDITY Industry Working Capital Current Assets-Current Liabilities Average Current Ratio Current Assets/Current Liabilities 1.3 Quick Ratio Cash & Equivalents/Current Liabilities 0.8 Average Collection Days Accounts Rec/Avg Daily Credit Sales 35 Average Payable Days Accounts Payable/Avg Daily COGS 35 Inventory Days Inventory/Avg Daily Inventory 45 OPERATING PERFORMANCE Inventory Turnover COGS/Inventory A/R Turnover Sales/Accounts Receivable A/P Turnover COGS/Accounts Payable Times Interest Earned Operating Income/Interest INVESTMENT RETURN Operating Income Margin Operating Income/Sales 25% Total Asset Turnover Sales/Total Assets 3 Return on Equity (ROE) Net Income/Common Equity 32%Perform complete financial analysis. After the financial analysis, answer the following questions 1- What are the top 4 issues facing this company? 2-Why? 3-What issue is your top priority