(Ratio analysis) Using Pamplin Inc.'s financial statements shown in the popup window: EEB a. Compute the ratios in the popup window, for 2014 and 2015 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 2014 and 2015 to compare both against the industry norms. Round the numbers to two decimal places and select your evaluation from the drop-down menu.) Current ratico Industry Norm 5.00X 2014 2015 Evaluation 1Data Table Industry Norm 2014 2015 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 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) 5.00 3.00 2.20 90.00 7.00 0.75 1.00 20.0% 9.0% Print Done Pamplin Inc. Balance Sheet at 12/31/2014 and 12/31/2015 ASSETS 2014 2015 Cash Accounts receivable Inventory Current assets $ 205 452 553 $ 1,210 $ 146 425 624 $ 1,195 Plant and equipment $ 2,202 $ 2,598 accumulated depreciation (1,008) (1,195) Less Net plant and equipment Total assets S 1,194 $ 2,404 1,403 $ 2,598 LIABILITIES AND OWNERS' EQUITY Accounts payable Notes payable-current (9.00% interest) Current liabilities Bonds (8.33% interest) Total debt Owners' equity $204 $ 204 604 $ 808 $152 151 $ 303 604 $ 907 Common stock Paid-in capital $ 298 604 $ 298 604 Homework: Chapter 4 Homework Sav core: 0 of 5 pts roblem 4-9 (simil (Ratio analysis) Using P a. Compute the ratios in the 8 of 13 (4 complete) HW Score: 4.7696, 3 of 63 Question Help Data Table Paid-in capital 604 694 604 789 b. How liquid is the firm? c. Are its managers gen d. How is the firm financing its o. Are its managers gen Note: 15% of sales are cash Retained earnings Total owners' equity Total liabilities and owners' equity 1,596 $ 2,404 S 1,691 S 2,598 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a a. Compute the following (Round the numbers to two Pamplin Inc. Income Statement for Years Ending 12/31/2014 and 12/31/2015 2014 2015 Current ratio Sales (85% credit sales) Cost of goods sold Gross proft Operating expenses $ 1,203 704 S 499 S 1,452 848 S 604 S 45 187 251 S 248 47 S 201 80 S 121 217 Operating income Interest expense Net income before taxes Taxes (40%) Net income 232 $ 372 62 S 310 124 S 186 nter your answer in the edit PrintDone 3 Pamainina Check