Problem 4-15 (similar to) Question Help (Ratio analysis) Artz, Inc.'s financial statements for 2018 are shown in the popup window: E. The chief financial officer for Artz has acquired industry averages for the following ratios in the popup window: . a. Compute the ratios listed above for Artz. b. Compared to the industry: (1) How liquid is the firm? (2) Are its managers generating attractive operating profit on the firm's assets? (3) How is the firm financing its assets? (4) Are its managers generating a good return on equity? Artz, Inc., Income Statement for the Year Ended 12/31/2018 Sales 4,590 (2,751) $ 1,839 Cost of goods sold Gross profits Operating expenses Marketing, and general and administrative expenses (1,012) (282) Depreciation expenses $ Total operating expenses (1,294) Operating profits 545 Interest expense (67) Earnings before taxes (taxble income) $ 478 Income taxes (100) 378 Net income Artz, Inc., Balance Sheet for 12/31/2018 ASSETS 2018 Cash $ 579 Accounts receivable 692 919 Inventory Total current assets 2,190 Gross fixed assets 2,021 (876) Accumulated depreciation $ 1,145 Net fixed assets $ 3,335 Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable $ 598 368 Short-term notes payable Total current liabilities FA 966 468 Long-term debt Total liabilities $ 1,434 Common equity: Common stock (par and paid-in capital) $ 559 Retained earnings 1,342 $ Total common equity 1,901 $ 3,335 Total liabilities and equity ILS lo a RATIO Current ratio Acid-test ratio Days in receivables Days in inventories Operating return on assets Operating profit margin Total asset turnover Fixed asset turnover Debt ratio Times interest earned Return on equity INDUSTRY 3.0 1.5 50.0 81.9 13.3% 8.0% 1.7 3.7 40.0 % 6.0 15.0 %