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(Ratio analysis) Art, Inc,'s financial statements for 2018 are shown in the popup window: . The chlef financial officer for Artz has acquired industry averages

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(Ratio analysis) Art, Inc,'s financial statements for 2018 are shown in the popup window: . The chlef financial officer for Artz has acquired industry averages for the following ratios in the popup window: a. Compute the ratios listod 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 retum on equity? a. Compute the ratios for Artz. The current ratio is K. (Round to two decimal places.) Artz, Inc., Income Statement for the Year Ended 12/31/2018 Sales Cost of goods sold Gross profits Operating expenses Marketing, and general and administrative expenses (1,034) Depreciation expenses Total operating expenses Operating profits Interest expense Earnings before taxes (taxble income) Income taxes Net income \begin{tabular}{rr} & (255) \\ \hline$ & (1,289) \\ \hline$ & 508 \end{tabular} Artz, Inc., Balance Sheet for 12/31/2018 ASSETS 2018 LIABILITIES AND OWNERS' EQUITY Accounts payable Short-term notes payable Total current liabilities Long-term debt Total liabilities \begin{tabular}{ll} $ & 573 \\ & 334 \\ \hline$ & 907 \\ & 499 \\ \hline$ & 1,406 \end{tabular} Common equity: Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets \begin{tabular}{ll} $ & 2,165 \\ $ & 2,010 \\ & (829) \\ \hline$ & 1,181 \\ \hline$ & 3,346 \\ \hline \hline \end{tabular} LIABILITIES AND OWNERS' EQUITY Accounts payable Short-term notes payable Total current liabilities Long-term debt Total liabilities \begin{tabular}{lr} $ & 573 \\ & 334 \\ \hline$ & 907 \\ & 499 \\ \hline$ & 1,406 \end{tabular} Common equity: Common stock (par and paid-in capital) Retained earnings Total common equity Total liabilities and equity \begin{tabular}{rr} $ & 599 \\ & 1,341 \\ \hline$ & 1,940 \\ \hline$ & 3,346 \\ \hline \hline \end{tabular} (Click on the following icon in order to copy its contents into a spreadsheet.)

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