Paragraph Sensitivity Styles Comprehensive Ratio Analysis The Jimenez Corporation's forecasted 2020 financial statements follow, along with some industry average ratios. Jimenez Corporation: Forecasted Balance Sheet as of December 31, 2020 Assets Cash $ 73,000 Accounts receivable 439,000 Inventories 893,000 Total current assets $1,405,000 Fixed assets 431,000 Total assets $1,836,000 Liabilities and Equity Accounts payable $ 332,000 Notes payable 104,000 Accruals 166,000 Total current liabilities $ 602,000 Long-term debt 404,870 Common stock 574,420 Retained earnings 254,710 Total liabilities and equity $1,836,000 Jimenez Corporation: Forecasted Income Statement for 2020 Sales $4,290,000 Cost of goods sold 3,695,000 Selling, general, and administrative expenses 410,456 Earnings before interest and taxes (EBIT) $ 184,544 Interest expense 50,000 Earnings before taxes (EBT) $ 134,544 Taxes (25%) 33,636 Net income $ 100,908 Jimenez Corporation: Per Share Data for 2020 EPS $ 4.39 Cash dividends per share $ 0.95 P/E ratio 5.0 Market price (average) $21.94 Number of shares outstanding 23,000 Industry Ratios Quick ratio 1.0 Current ratio 2.7 Inventory turnover 7.0 Days sales outstanding 32.0 days Fixed assets tumaver 13.0 Total assets turnaxer 2.6 Return on assets 9.1% Return on equity 18.2% Profit margin on sales 3.5% Debt-to-assets ratio 21.0% Liabilities-to-assets ratio 50.0% P/E ratio 6.0 Market/Book ratio 3.5 Notes: Industry average ratios have been stable for the past 4 years. Based on year-end balance sheet figures. Calculation is based on a 365 day year. Calculate Jimenez's 2020 forecasted ratios, compare them with the industry average data, and comment briefly on Jimenez's projected strengths and weaknesses. Assume that there are no changes from the prior period to any of the operating balance sheet accounts. Do not round intermediate calculation. Round your answers to two decimal places. Current ratio Quick ratio 1.0 Current ratio 2.7 Inventory turnover 7.0 Days sales outstanding 32.0 days Fixed assets turnoverb 13.0 Total assets turnover 2.6 Return on assets 9.1% Return on equity 18.2% Profit margin on sales 3.5% Debt-to-assets ratio 21.0% Liabilities-to-assets ratio 50.0% P/E ratio 6.0 Market/Book rato 3.5 Notes: Industry average ratios have been stable for the past 4 years. Based on year-end balance sheet figures. Calculation is based on a 365-day year. Calculate Jimenez's 2020 forecasted ratios, compare them with the industry average data, and comment briefly on Jimenez's projected strengths and weaknesses. Assume that there are no changes from the prior period to any of the operating balan accounts. Do not round intermediate calculation. Round your answers to two decimal places Ratios Firm Industry Comment Quick ratio 10 -Select v 2.7 -Select Inventory turnover 2.0 Select days 32 days Select Days sales outstanding Fixed assets turnover Total assets turnover 13.0 -Select 2.6 -Selert v Return on assets % 9.1% Select Return on equity 18.2% -Select- % 3.5% -Select- Profit margin on sales Debt-to-assets ratio 21.0% Select % % Liabilities-to-assets ratio 50.0% -Select- 6.0 P/E ratio Market/Book ratio So, the firm appears to be select managed. -Select- -Select v 3.5 Check My Work (3 res foon Key