Note: At least one financial metric such as Survival Revnue, NOPAT, Ratio etc should be used to support answer.

Dan Ervin was recently hired by East Coast Yachts to assist the company with its short-term financial planning and to evaluate the company's financial performance. Dan must evaluate the company's financial performance and recognizing what the problem is and what areas need to be addressed. To get Dan started with his analyses, Dan has gathered the Financial statement below. Question Dan needs to prepare a report which include 1.His evaluation of the financial health of the firm (Both short and long term) 2. His evaluation of the profitability of the firm 3. .His evaluation of the operational efficiency of the firm. 4..Financial adjustment to recommend to improve profitability WUsail Inc. Income Statement in $ millions) Sales 5,871.00 Cost of goods sold 3,430.00 Gross Profit 2,44100 Selling, general, and administrative 652.00 Depreciation 191.00 Operating income 1.598.00 Interest expense 105.00 Pretax income 1,493.00 Taxes (40%) 597.00 Net income 896.00 Dividends Retained earnings 225.00 671.00 Balance Sheet (in $ millions) 2019 2018. Change Current assets Cash and equivalents Accounts receivable Inventories 348.00 622.00 493.00 301.00 574.00 510.00 Total current assets 1,463.00 1,385.00 Fixed assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment 3,837.00 1,031.00 2,806,00 2,991.00 840.00 2,151.00 Total fixed assets 2,806.00 2,151.00 Total assets 4,269.00 3,536.00 Current liabilities Accounts payable Notes payable Accrued expenses Total current liabilities 568.00 85.00 190.00 843.00 418.00 79.00 308.00 805.00 Long-term liabilities Long-term debt Total long-term liabilities 907.00 907.00 883.00 883.00 Stockholders' equity Common stock Capital surplus Accumulated retained earnings 113.00 466.00 1,940.00 113.00 466.00 1,269.00 2,519.00 1,848.00 Total equity Total liabilities and shareholders' equity 4,269.00 3,536.00 Statement of cash flows (in $ millions) Operations Net income Depreciation 896.00 191.00 Changes in assets and liabilities Accounts receivable Inventories Accounts payable Accrued expenses Total cash flow from operations (48.00) 17.00 150.00 (118.00) 1,088.00 (846.00) Investing activities Acquisition of fixed assets Sale of fixed assets Total cash flow from investing activities (846.00) Financing activities Issuance of LTD Notes payable Dividends Total cash flow from financing activities 24.00 6.00 (225.00) (195.00) Change in cash (on balance sheet) Beginning Cash 47.00 301.00