Tampa Corporation's December 31 Balance Sheets
Assets			2018	2017
Cash			$ 72,000	$ 65,000
Accounts receivable			439,000	328,000
Inventories			894,000	813,000
Total current assets			$ 1,405,000	$ 1,206,000
Land and building			238,000	271,000
Machinery			132,000	133,000
Other fixed assets			61,000	57,000
Total assets			$ 1,836,000	$ 1,667,000
Liabilities and equity
Accounts payable			$ 80,000	$ 72,708
Accrued liabilities			45,010	40,880
Notes payable			476,990	457,912
Total current liabilities			$ 602,000	$ 571,500
Long-term debt			404,290	258,898
Common stock			575,000	575,000
Retained earnings			254,710	261,602
Total liabilities and equity			$ 1,836,000	$ 1,667,000
Tampa Corporation's December 31 Income Statements
			2018	2017
Sales			$ 4,240,000	$ 3,635,000
Cost of goods sold			3,680,000	2,980,000
Gross operating profit			$ 560,000	$ 655,000
General admin. and selling expenses			303,320	297,550
Depreciation			159,000	154,500
EBIT			$ 97,680	$ 202,950
Interest			67,000	43,000
EBT			$ 30,680	$ 159,950
Taxes (40%)			12,272	63,980
Net income			$ 18,408	$ 95,970
Per-Share Data			2018	2017
EPS			$0.80	$4.17
Cash dividends			$1.10	$0.95
Market price (average)			$12.34	$23.57
P/E ratio			15.42	5.65
Number of shares outstanding			23,000	23,000
Once we have this information set, we can calculate the necessary ratios for this analysis.
Ratio Analysis			2018	2017	Industry Avga
Liquidity
Current ratio			2.33	2.11	2.7
Asset Management
Inventory turnoverb			4.29	3.86	7.0
Days sales outstandingc			37.79	32.94	32
Fixed assets turnoverb			9.84	7.89	13.0
Total assets turnoverb			2.31	2.18	2.6
Profitability
Return on assets			1.00%	5.76%	9.1%
Return on equity			3.20%	16.69%	18.2%
Return on invested capital			10.19%	21.18%	14.5%
Profit margin			0.43%	2.64%	3.5%
Debt Management
Debt-to-capital ratiod			54.81%	49.81%	50.0%
Market Value
P/E ratio			15.42	5.65	6.0
M/B ratio			0.49	0.94	1.5
a Industry average ratios have been constant for the past 4 years.
b Based on year-end balance sheet figures.
c Calculation is based on a 365-day year.
d Measured as (Short-term debt + Long-term debt)/(Short-term debt + Long-term debt + Common equity).

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Using the data above, answer the following questions:

a. Assess Tampa's liquidity position and determine how it compares with peers and how the liquidity

b. Assess Tampa's asset management position and determine how it compares with peers and how its asset management efficiency has changed over time.

c. Assess Tampa's debt management position and determine how it compares with peers and how its debt management has changed over time.

d. Assess Tampa's profitability ratios and determine how they compare with peers and how its profitability position has changed over time.

e. Calculate Tampa's ROE as well as the industry average ROE, using the DuPont equation.

	ROE =	PM x	TA Turnover x Equity Multiplier
2018
2017
Industry Avg.

f. From this analysis, how does Tampa's financial position compare with the industry average numbers?