Solution a. Use the preceding financial statements to complete the table below. Assume that the industry averages given Number of shares outstanding 3,000 25 Price per share Zach Industries Ratio Analysis Current ratio Quick ratio Inventory turnover Average collection period (days) Debt ratio Times interest earned Gross profit margin Net profit margin Return on total assets Return on common equity Market/book ratio $ Industry Average Liquidity: Zach Industries' liquidity position has to the industry average. The firm 1.80 0.70 2.50 37.5 65.0% 3.8 38% 3.5% 4.0% 9.5% 1.1 The firm may be holding slightly excessive inventory. Overall, the firm maintains of accounts b. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's overall financial condition. Debt: Zach Industries' debt position has average. Zach's ability to service interest payments has average. and Actual 2021 Activity: Zach Industries' ability to convert assets into cash has Examination into the cause of the Inventory turnover has also 1.84 0.78 2.59 36.5 67.0% Market: Zach Industries' the firm's performance has been interpreted as more than the industry. 4.0 40% 3.6% 4.0% 8.0% 1.2 Profitability: Although Zach Industries' gross profit margin is indicating cost of goods sold, the firm has a(n) comparison to average. The firm has Actual 2022 from 2021 to 2022. in the average collection period is warranted. for the period under review and is fair compared to industry. from 2021 to 2022 and is able to satisfy short-term obligations as they come due. than average operating expenses. The firm has a(n) investment and return on equity in comparison to the industry and shows a(n) Note: Use a 365-day year since 2021 and company debt level is and is the industry its industry average, net profit margin in return on trend. in its market price relative to their book value per share indicates that in 2022 than in 2021, and it is a little profitability at the risk of illiquidity. Investigation into the management is warranted. Requirements 1 In cell H55, by using cell references to the given data, calculate the current ratio. 2 In cell H56, by using cell references to the given data, calculate the quick ratio. Note: Subtract the inventories from total current assets and divide by the total current liabilities. 3 In cell H57, by using cell references to the given data, calculate the inventory turnover. 4 In cell H58, by using cell references to the given data, calculate the average collection period in days. 5 In cell H59, by using cell references to the given data, calculate the average debt ratio. Note: Be sure to use the total asset value from cell F32. 6 In cell H60, by using cell references to the given data, calculate the times interest earned ratio. 7 In cell H61, by using cell references to the given data, calculate the gross profit margin. 8 In cell H62, by using cell references to the given data, calculate the net profit margin. 9 In cell H63, by using cell references to the given data, calculate the return on total assets. # In cell H64, by using cell references to the given data, calculate the return on common equity. # In cell H65, by using cell references to the given data, calculate the market/book ratio. # In cell G69, type either improved or deteriorated based on your assessment of the company's ratios. # In cell J69, type either inferior or superior based on your assessment of the company's ratios. # In cell F70, type either may not be or will be based on your assessment of the company's # In cell H72, type either improved or deteriorated based on your assessment of the company's # In cell F73, type either increase or decrease based on your assessment of the company's # In cell E74, type either increased or decreased based on your assessment of the company's # In cell F77, type either improved or deteriorated based on your assessment of the company's ratios. # In cell J77, type either above or below based on your assessment of the company's ratios. # In cell G78, type either improved or deteriorated based on your assessment of the company's ratios. # In cell 178, type either above or below based on your assessment of the company's ratios. # In cell H81, type either above or below based on your assessment of the company's ratios. # In cell D82, type either high or low based on your assessment of the company's ratios. # In cell H82, type either superior or inferior based on your assessment of the company's # In cell D84, type either higher or lower based on your assessment of the company's ratios. # In cell 184, type either superior or inferior based on your assessment of the company's ratios. # In cell 185, type either upward or downward based on your assessment of the company's # In cell E87, type either increase or decrease based on your assessment of the company's # In cell G88, type either positive or negative based on your assessment of the company's # In cell C89, type either higher or lower based on your assessment of the company's ratios. # In cell E91, type either superior or inferior based on your assessment of the company's ratios. # In cell D92, type either payable or receivable based on your assessment of the company's # In cell F92, type either inventory or cash based on your assessment of the company's ratios. # Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. Points 1 1 1 1 1 AAAA 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 Solution a. Use the preceding financial statements to complete the table below. Assume that the industry averages given Number of shares outstanding 3,000 25 Price per share Zach Industries Ratio Analysis Current ratio Quick ratio Inventory turnover Average collection period (days) Debt ratio Times interest earned Gross profit margin Net profit margin Return on total assets Return on common equity Market/book ratio $ Industry Average Liquidity: Zach Industries' liquidity position has to the industry average. The firm 1.80 0.70 2.50 37.5 65.0% 3.8 38% 3.5% 4.0% 9.5% 1.1 The firm may be holding slightly excessive inventory. Overall, the firm maintains of accounts b. Analyze Zach Industries' financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company's overall financial condition. Debt: Zach Industries' debt position has average. Zach's ability to service interest payments has average. and Actual 2021 Activity: Zach Industries' ability to convert assets into cash has Examination into the cause of the Inventory turnover has also 1.84 0.78 2.59 36.5 67.0% Market: Zach Industries' the firm's performance has been interpreted as more than the industry. 4.0 40% 3.6% 4.0% 8.0% 1.2 Profitability: Although Zach Industries' gross profit margin is indicating cost of goods sold, the firm has a(n) comparison to average. The firm has Actual 2022 from 2021 to 2022. in the average collection period is warranted. for the period under review and is fair compared to industry. from 2021 to 2022 and is able to satisfy short-term obligations as they come due. than average operating expenses. The firm has a(n) investment and return on equity in comparison to the industry and shows a(n) Note: Use a 365-day year since 2021 and company debt level is and is the industry its industry average, net profit margin in return on trend. in its market price relative to their book value per share indicates that in 2022 than in 2021, and it is a little profitability at the risk of illiquidity. Investigation into the management is warranted. Requirements 1 In cell H55, by using cell references to the given data, calculate the current ratio. 2 In cell H56, by using cell references to the given data, calculate the quick ratio. Note: Subtract the inventories from total current assets and divide by the total current liabilities. 3 In cell H57, by using cell references to the given data, calculate the inventory turnover. 4 In cell H58, by using cell references to the given data, calculate the average collection period in days. 5 In cell H59, by using cell references to the given data, calculate the average debt ratio. Note: Be sure to use the total asset value from cell F32. 6 In cell H60, by using cell references to the given data, calculate the times interest earned ratio. 7 In cell H61, by using cell references to the given data, calculate the gross profit margin. 8 In cell H62, by using cell references to the given data, calculate the net profit margin. 9 In cell H63, by using cell references to the given data, calculate the return on total assets. # In cell H64, by using cell references to the given data, calculate the return on common equity. # In cell H65, by using cell references to the given data, calculate the market/book ratio. # In cell G69, type either improved or deteriorated based on your assessment of the company's ratios. # In cell J69, type either inferior or superior based on your assessment of the company's ratios. # In cell F70, type either may not be or will be based on your assessment of the company's # In cell H72, type either improved or deteriorated based on your assessment of the company's # In cell F73, type either increase or decrease based on your assessment of the company's # In cell E74, type either increased or decreased based on your assessment of the company's # In cell F77, type either improved or deteriorated based on your assessment of the company's ratios. # In cell J77, type either above or below based on your assessment of the company's ratios. # In cell G78, type either improved or deteriorated based on your assessment of the company's ratios. # In cell 178, type either above or below based on your assessment of the company's ratios. # In cell H81, type either above or below based on your assessment of the company's ratios. # In cell D82, type either high or low based on your assessment of the company's ratios. # In cell H82, type either superior or inferior based on your assessment of the company's # In cell D84, type either higher or lower based on your assessment of the company's ratios. # In cell 184, type either superior or inferior based on your assessment of the company's ratios. # In cell 185, type either upward or downward based on your assessment of the company's # In cell E87, type either increase or decrease based on your assessment of the company's # In cell G88, type either positive or negative based on your assessment of the company's # In cell C89, type either higher or lower based on your assessment of the company's ratios. # In cell E91, type either superior or inferior based on your assessment of the company's ratios. # In cell D92, type either payable or receivable based on your assessment of the company's # In cell F92, type either inventory or cash based on your assessment of the company's ratios. # Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. Points 1 1 1 1 1 AAAA 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0