(Ratio analysis) The financial statements and industry norms for Pamplin Inc. are shown in the popup window: . a. Compute the ratios in the popup window, |, for 2017 and 2018 to compare both against the industry norms b. How liquid is the firm? C. Are its managers generating an adequate operating profit on the firm's assets? d. How is the firm financing its assets? e. Are its managers generating a good return on equity? Note: 15% of sales are cash sales, with the remaining 85% being credit sales. a. Compute the following ratios for 2017 and 2018 to compare both against the industry norms. (Round the numbers to two decimal places and select your evaluation from the drop-down menu.) Industry Norm 2017 2018 Evaluation Current ratio 5.00X 2017 2018 Current ratio Acid-test (quick) ratio Inventory turnover Average collection period Debt ratio Times interest earned Total asset turnover Fixed asset turnover Operating profit margin Return on common equity Industry Norm 5.00 3.00 2.20 90.00 33% 7.00 0.75 1.00 20.0% 9.0% Pamplin Inc. Balance Sheet at 12/31/2017 and 12/31/2018 ASSETS 2017 $ 198 449 548 $ 1,195 2018 $ 145 428 629 $ 1,202 Cash Accounts receivable Inventory Current assets Plant and equipment Less accumulated depreciation Net plant and equipment Total assets $ 2,195 (1,010) $ 2,605 (1,199) $ 1,185 $ 2,380 $ 1,406 $ 2,608 $ 201 LIABILITIES AND OWNERS' EQUITY Accounts payable Notes payable-current (9.00% interest) Current liabilities Bonds (8.33% interest) Total debt Owners' equity Common stock Paid-in capital Retained earnings Total Warlocuit $ 201 601 $ 802 $ 153 148 $ 301 601 $ 902 $ 300 603 675 $ 300 603 803 c70 czne Owners' equity Common stock Paid-in capital Retained earnings Total owners' equity Total liabilities and owners' equity $ 300 603 675 $ 300 603 803 $ 1,578 $ 2,380 $ 1,706 $ 2,608 ck on the following icon 2 in order to copy its contents into a spreadsheet.) 2018 $ 1,450 851 $ 599 $ 44 Pamplin Inc. Income Statement for Years Ending 12/31/2017 and 12/31/2018 2017 Sales (85% credit sales) $ 1,201 Cost of goods sold 695 Gross profit $ 506 Operating expenses 33 Depreciation 218 251 Operating profits $ 255 Interest expense 53 Profit before taxes $ 202 Taxes (21%) 42 Net income $ 160 189 233 $ 366 70 $ 296 62 $ 234