Question No. 1 (Marks 15) C Company's forecasted 2020 financial statements are given below, along with industry average ratios. C Company: Forecasted Balance sheet as of December 31, 2020Cash 72,000Accounts Receivable 439,000Inventories 894,000Total Current Assets 1,405,000Land and Buildings 238,000Machinery 132,000Other Fixed assets 61,000Total Assets ,1,836,000Equity & Liabilities Accounts and Notes Payable 432,000Accrued liabilities 170,000Total Current liabilities 602,000Long term Debt 404,290Common stock 575,000Retained earnings 254,710Total Equity & Liabilities 1,836,000?C Company: Forecasted Income Statement for the year ended December 31, 2020Sales 4,290,000Cost of goods sold 3,580,000Gross profit 710,000General Selling and Admin Expenses 236,320Depreciation 159,000Other Expenses 134,000Profit before Tax 180,680Taxes 40% 72,272Profit after tax 108,408Per Share data EPS 4.71DPS .95Market Price Per Share 23.57P/E Ratio 5 timesTotal No. of Shares 23,000Industry Average Ratios - 2020Current Ratio 2.7Inventory Turnover 7 timesAverage Collection Period 32 daysTotal Asset turnover 2.6 timesDebt Ratio 50%Profit Margin on Sales 3.5%Required: Calculate C Company's forecasted Ratios, compare them the industry average data and comment briefly on strength and weaknesses of the company.

Question No. 1 (Marks 15) C Company: Forecasted Income Statement for the year ended December 31, 2020 C Company's forecasted 2020 financial statements are given below, along with industry Sales 4.290,000 average ratios. Cost of goods sold 3,580,000 C Company: Forecasted Balance sheet as of December 31, 2020 Gross profit 710.000 General Selling and Admin Expenses 236,320 Cash 72,000 Depreciation 159.000 Accounts Receivable 439,000 Other Expenses 134,000 Inventories 894,000 Profit before Tax 180,680 Taxes 40% 72.272 Total Current Assets 1,405,000 Profit after tax 108,408 Land and Buildings 238,000 Machinery 132,000 Per Share data EPS 4.71 61,000 DPS 95 Other Fixed assets Market Price Per Share 23.57 5 times Total Assets ,1,836,000 P/E Ratio Total No. of Shares 23,000 Equity & Liabilities Industry Average Ratios - 2020 Accounts and Notes Payable 432,000 Current Ratio 2.7 Accrued liabilities 170,000 Inventory Turnover 7 times Total Current liabilities 602,000 Average Collection Period 32 days Total Asset turnover 2.6 times Long term Debt 404,290 Debt Ratio 50% Common stock 575,000 Profit Margin on Sales 3.5% Retained earnings 254,710 Total Equity & Liabilities 1,836,000 Required: Calculate C Company's forecasted Ratios, compare them the industry average data and comment briefly on strength and weaknesses of the company