$\backslash$table$[[,,,$Industry,$],[$Ratios$,$Firm,,Average,Comment$],[$Quick ratio,,,$1\mathrm{.}0,$Weak V$],[$Current ratio,,,$2\mathrm{.}7,-$Select$-$ VeBook

Comprehensive Ratio Analysis

The Jimenez Corporation's forecasted $2022$ financial statements follow, along with some industry average ratios.

Jimenez Corporation: Forecasted Balance Sheet as of December $31,2022$

Assets

Cash $ $73,000$

Accounts receivable $439,000$

Inventories $893,000$

Total current assets $$1,405,000$

Fixed assets $431,000$

Total assets $$1,836,000$

Liabilities and Equity

Accounts payable $ $332,000$

Notes payable $108,000$

Accruals $162,000$

Total current liabilities $ $602,000$

Long$-$term debt $404,240$

Common stock $575,050$

Retained earnings $254,710$

Total liabilities and equity $$1,836,000$

Jimenez Corporation: Forecasted Income Statement for $2022$

Sales $$4,290,000$

Cost of goods sold $3,683,000$

Selling, general, and administrative expenses $409,456$

Earnings before taxes $($EBT$)$ $ $197,544$

Interest expense $50,000$

Earnings before taxes $($EBT$)$ $ $147,544$

Taxes $(25\%)36,886$

Net income $ $110,658$

Jimenez Corporation: Per Share Data for $2022$

EPS $ $4\mathrm{.}81$

Cash dividends per share $ $0\mathrm{.}95$

P$/$E ratio $5\mathrm{.}0$

Market price $($average$)$ $$24\mathrm{.}06$

Number of shares outstanding $23,000$

Ratio

Industry Averagea

Quick ratio $1\mathrm{.}0$

Current ratio $2\mathrm{.}7$

Inventory turnoverb $7\mathrm{.}0$

Days sales outstandingc $32\mathrm{.}0$ days

Fixed assets turnoverb $13\mathrm{.}0$

Total assets turnoverb $2\mathrm{.}6$

Return on assets $9\mathrm{.}1\%$

Return on equity $18\mathrm{.}2\%$

Profit margin on sales $3\mathrm{.}5\%$

Debt$-$to$-$assets ratio $21\mathrm{.}0\%$

Liabilities$-$to$-$assets ratio $50\mathrm{.}0\%$

P$/$E ratio $6\mathrm{.}0$

Market$/$Book ratio $3\mathrm{.}5$

Notes:

aIndustry average ratios have been stable for the past $4$ years.

bBased on year$-$end balance sheet figures.

cCalculation is based on a $365-$day year.

Calculate Jimenez's $2022$ forecasted ratios, compare them with the industry average data, and comment briefly on Jimenez's projected strengths and weaknesses. Assume that there are no changes from the prior period to any of the operating balance sheet accounts. Do not round intermediate calculation. Round your answers to two decimal places.

Ratios

firm vs industry avg

Quick ratio

$1\mathrm{.}0$

$-$Select$-$

Current ratio

$2\mathrm{.}7$

$-$Select$-$

Inventory turnover

$7\mathrm{.}0$

$-$Select$-$

Days sales outstanding

days $32$ days

$-$Select$-$

Fixed assets turnover

$13\mathrm{.}0$

$-$Select$-$

Total assets turnover

$2\mathrm{.}6$

$-$Select$-$

Return on assets

$\%9\mathrm{.}1\%$

$-$Select$-$

Return on equity

$\%18\mathrm{.}2\%$

$-$Select$-$

Profit margin on sales

$\%3\mathrm{.}5\%$

$-$Select$-$

Debt$-$to$-$assets ratio

$\%21\mathrm{.}0\%$

$-$Select$-$

Liabilities$-$to$-$assets ratio

$\%50\mathrm{.}0\%$

$-$Select$-$

P$/$E ratio

$6\mathrm{.}0$

$-$Select$-$

Market$/$Book ratio

$3\mathrm{.}5$

$-$Select$-$

So$,$ the firm appears to be$???$

managed.