Question 2 6 Points Emery Corporation is a machinery manufacturing company located in Morganton, NC, USA. The company's management wanted to evaluate their financial performance by applying key financial ratios. a) Using the latest Financial statements (Table 1) calculate the following performance measures: 1. Current Ratio 2. Average Collection Period 3. Operating Return on Assets 4. Debt Ratio 5. Price Earnings Ratio I b) Interpret the results by comparing it with the industry average (Table 2) Table 1: Financial Statements Emery Corporation Financial Statements For the year ended December 31, 2017 Income Statement Balance Sheet Assets: Cash Accounts receivable Inventory Net fixed assets Total assets S230,000 400,000 550.000 2.250,000 S3,430,000 Sales (all credit) Cost of goods sold Operating expense Interest expense Income taxes Net income $9.000.000 (4.350,000) (3.150,000) (200.000) (430.000) $670.000 Liabilities and owners' equity: Accounts payable Long-term Notes payable Long-term debt $200.000 450,000 1.080.000 Owners' Equity 1.700.000 Total liabilities and owner's equity $3.430.000 Earnings Per Share 2.20 Market price per share 35 Table 2: Industry Average Industry Average Ratio Current Ratio Average Collection 14. Onting Return on Asset Thi Rat 101 19 Price Kati 16