Section 4: Financial Analysis Some recent financial statements for Company XYZ, follow. Use this information to answer the next questions: 2019 Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 5,298 5,827 Accounts payable $ 3,754 Accounts receivable 7,707 8,477 Notes payable 3,045 Inventory 12.150 21,956 Other Total $ 25,155 $ 36,260 Total $ 6,951 Long-term debt $ 24,700 Owners' equity Common stock and paid-in surplus $ 40,000 Fixed assets Accumulated retained earnings 28,805 Net plant and equipment $ 75,301 $ 79,412 Total $ 68,805 Total assets $100,456 $115,672 Total liabilities and owners' equity $100,456 152 $ 3,986 3,318 179 $ 7,483 $ 16,000 $ 37,000 55.189 S 92,189 $115,672 2019 Income Statement Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends $16,000 Addition to retained earnings 11,647 $229,854 184,317 8.730 $ 36,807 1,811 $ 34,996 7,349 $ 27,647 (6pts) 4) Find the following financial ratios for Company XYZ at the end of 2019: (use year-end figures rather than average values where appropriate) 1. Current ratio (1.5 pts) 2. Total asset turnover (1.5 pts) 3. Debt-equity ratio (1.5 pts) 4. Profit margin (1.5 pts) (6pts) 5) After calculating the ratios for Company XYZ, you have uncovered the following industry ratios for 2019: Current ratio Total asset turnover Debt equity ratio Profit margin Lower Quartile 1.3 2.1 .23 8.4% Median 26 2.7 .50 11.2% Upper Quartile 5.3 4.1 .60 16.3% 1. How is Company XYZ profitability compared to the industry? (3pts) 2. How is Company XYZ Liquidity compared to the industry? (3 pts)