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- Short Answers: Using the information provided below for ABC, Inc., please write the appropriate calculations and/or short answer to the below questions (4 points each): ABC, Inc. Balance Sheet (in thousands) December 31, 2014 Assets Cash Accounts receivable Inventories Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets $ 2.000 17.800 8.700 28,500 70,000 26.500 43.500 $72.000 $18,000 13.350 31,350 Liabilities and Equity Accounts payable Accruals Total current liabilities Long-term debt Total liabilities Common stock (par value and paid in capital) Retained earnings Total stockholders' equity Total Liabilities and Equity 8.250 39,600 2,000 30,400 32.400 $72.000 ABC, Inc. Income Statement in thousands) December 31, 2014 Sales (all credit) Cost of goods sold Gross profit on sales Operating expenses Operating income Interest expense Eamings before tax Income tax Net income available to common stockholders $200,000 140.000 60,000 56,000 4,000 1.000 3.000 1.050 $ 1,950 ABC, Inc. 2013 Ratios Industry Average Ratios in 2013 Current ratio Acid test ratio Average collection period Inventory turnover Fixed assets turnover Total asset turnover Debt ratio Times-interest-earned Net profit margin Retum on equity 1.2 0.89 30 days 18.1 4.1 2.78 50% 5.5% 1.15% 5.21% 1.4 0.94 25 5 days 20.3 4.8 2.8 60% 4.5% 1.5% 7.32% 4) In 2014, ABC's average collection period is: 5) In 2014, ABC's inventory turnover is: 6) In 2014, ABC's fixed asset turnover is: 7) Since 2013, ABC's efficiency at using its assets has: 8) In 2014, the improvement in ABC's return on equity occurred because: 9) Since 2013, ABC's liquidity has: 10) Since 2013, ABC's inventory management has: 11) How has the company's financial condition changed since 2013? How does it compare to its industry