(Ratio analysis) Using Pamplin Inc.'s financial statements shown in the popup window:

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.)

Industry Norm 2014 2015 Evaluation

Current ratio 5.00x ___X ____X Poor or Satisfactory

	Industry Norm	2014	2015
Current ratio	5.00
Acid- test (quick) ratio	3.00
Inventory turnover	2.20
Average collection period	90.00
Debt ratio	33
Times interest earned	7.00
Total asset turnover	.75
Fixed asset turnover	1.00
Operating profit margin	20.0%
Return on common equity	9.0%