The financial statements for Lake of Egypt Marina is provided: Lake of Egypt Marina, Inc. Balance Sheet as of December 31, 2007 and 2008 (in millions of dollars) 2007 2008 Liabilities & Equity Assets 2007 2008 Current assets: Cash and marketable securities Accounts receivable Inventory Total $ 65 $ 75 110 115 190 200 $365 $ 390 Current liabilities Accrued wages and taxes Accounts payable Notes payable Total $ 43 $ 40 80 90 70 80 $ 193 $ 210 Long-term debt: $ 280 $ 300 $ 471 $ 580 100 110 Fixed assets: Gross plant and equipment Less: Depreciation Net plant and equipment Other long-term assets Total $ 371 $ 470 49 50 $ 420 $ 520 Stockholders' equity: Preferred stock (5 million shares) $ 5 $ 5 Common stock and paid-in surplus 65 65 (65 million shares) Retained earnings 242_330 Total $ 312 S 400 Total liabilities and equity $ 785 $ 910 Total assets $ 785 S 910 Lake of Egypt Marina, Inc. Income Statement for Years Ending December 31, 2007 and 2008 (in millions of dollars) 2007 2008 Net sales (all credit) $ 432 $ 515 Less: Cost of goods sold 200 260 Gross profits 232 255 Less: Depreciation 20 22 Earnings before interest and taxes (EBIT) 212 233 Less: Interest 30 33 Earnings before taxes (EBT) 182 200 Less: Taxes 57 Net income $ 127 $ 143 55 Less: Preferred stock dividends Net income available to common stockholders Less: Common stock dividends Addition to retained earnings $ 5 $ 122 $ 65 $ 57 $ 5 $ 138 $ 65 $ 73 Per (common) share data: Earnings per share (EPS) Dividends per share (DPS) Book value per share (BV) Market value (price) per share (MV) $1.877 $1.000 $4.723 $12.550 $2.123 $1.000 $6.077 $14.750 Industry 2.0 times 1. Current ratio 2. Quick ratio 3. Inventory turnover ratio 4. Days' sales in inventory 5. Average collection period 6. Average payment period 7. Total asset turnover ratio 8. Debt-to-equity ratio 9. Profit margin 1.2 times 3.60 times 101.39 days 32.50 days 45 days 0.85 times 1.67 times 28.75% Industry 1. Current ratio 2. Quick ratio 3. Inventory turnover ratio 4. Days' sales in inventory 5. Average collection period 6. Average payment period 7. Total asset turnover ratio 8. Debt-to-equity ratio 9. Profit margin 2.0 times 1.2 times 3.60 times 101.39 days 32.50 days 45 days 0.85 times 1.67 times 28.75% Requirements: Using the Industry averages provided, calculate similar ratios for Lake of Egypt Marina Inc. and comment on its performance as at year-end 2008