P3-23 Cross-sectional ratio analysis Use the financial statements below and on the next page for Fox Manufacturing Company for the year ended December 31, 2015, along with the industry average ratios below to do the following: a. Prepare and interpret a complete ratio analysis of the firm's 2015 operations. b. Summarize your findings and make recommendations Fox Manufacturing Company Income Statement for the Year Ended December 31,2015 $600,000 460,000 $140,000 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses General and administrative expenses Depreciation expense 30,000 30,000 60,000 80,000 10,000 $ 70,000 27100 Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes (Hint: Earnings available for common stockholders as there are no preferred stockholders) 42,900 $2.15 Earnings per share (EPS) Ratio Current ratio Quick ratio Inventory turnover Average collection period Total asset turnover Debt ratio Times interest earned ratio Gross profit margin Operating profit margin Net profit margin Return on total assets (ROA) Return on common equity (ROE) Earnings per share (EPS) "Based on a 365-day year and on end-of-year figures. Industry average, 2015 2.35 0.87 4.SS 35.8 days 1.09 0.300 12.3 0.202 0.135 0.091 0.099 0.167 $3.10