Otago Bay Marine Motors Balance Sheets ($ in thousands)
	As of December 31,
	2019		2018
Assets
Current assets
Cash and cash equivalents	$56,715		$88,488
Accounts receivable, net of allowances	18,989		12,075
Inventories	30,342		24,471
Prepaid expenses	3,091		5,368
Total current assets	$109,137		$130,402
Property, plant, and equipment, at cost	$138,548		$83,755
Less: Accumulated depreciation and amortization	(48,724)		(44,707)
Net fixed assets	$89,824		$39,048
Other assets	$96,931		$48,666
Total assets	$295,892		$218,116
Liabilities and Shareholders' Equity
Current liabilities
Notes and accounts payable	$26,640		$3,924
Dividends payable	830		769
Accrued liabilities	20,955		15,140
Total current liabilities	$48,425		$19,833
Noncurrent liabilities
Long-term debt	$38,702		$20,689
Shareholders' equity
Common stock	$6,575		$5,675
Capital in excess of par value	109,466		85,773
Retained earnings	92,724		86,146
Total shareholders' equity	$208,765		$177,594
Total liabilities and equity	$295,892		$218,116
Average number of common shares outstanding	11,470,000		11,470,000

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Otago Bay Marine Motors Income Statements ($ in thousands)
	For the Year
	Ended December 31,
	2019		2018
Sales revenue	$257,909		$244,743
Cost of goods sold	134,807		125,400
Gross profit margin	$123,102		$119,343
Operating expenses	70,029		70,977
Earnings from operations	$53,073		$48,366
Other income (expense), net	5,920		2,214
Earnings before income taxes	$58,993		$50,580
Provision for income taxes	22,417		$19,220
Net earnings	$36,576		$31,360
Cash dividends ($0.38 and $0.24 per share)	$4,359		$2,753
Average price per share of common stock
(in the fourth quarter of the year)	$70.37		$79.42

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Otago bay Marine Motors		Industry Averages (for 2019)
	2019			2018
Current ratio			2.41
Total asset turnover			1.30
Debt-equity ratio			10.50	%
Net profit margin			9.06	%
ROA			15.98	%
ROE			19.24	%
EPS			$1.37
P/E ratio			19.22
Dividend yield			0.41	%
Payout ratio			27.21	%
Price-to-book-value ratio			6.96

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Listed here, are the

2018

and

2019

balance sheets

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,

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, and income statements

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,

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, for Otago Bay Marine Motors, a major manufacturer of top-of-the-line outboard motors. a. On the basis of the information provided, calculate the following financial ratios for

2018

and

2019:

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.

b. Considering the financial ratios you computed, along with the industry averages, how would you characterize the financial condition of Otago Bay Marine Motors? Explain.

a. Calculate the following financial ratios for

2018

and

2019.

(Round to two decimal places.)

	Otago Bay Marine Motors
	2019	2018
Current ratio	enter your response here	enter your response here

(Round to two decimal places.)

	Otago Bay Marine Motors
	2019	2018
Total asset turnover	enter your response here	enter your response here

(Round to two decimal places.)

	Otago Bay Marine Motors
	2019	2018
Debt-equity ratio	enter your response here%	enter your response here%