The income statement and balance sheet for HOYT, Inc. are provided below. (Note that the reported figures are expressed in thousands of dollars). HOYT, INC. Balance Sheets as of December 31, 2018 and 2019 (in 000s) 2018 2019 2018 2019 Assets Llabilities and Owners' Equity Current assets Current liabilities Cash $ 100 $ 175 Accounts payable $ 300 $ 430 Accounts receivable 300 295 Notes payable 500 560 Inventory 450 530 Total $ 850 $ 1000 Total $ 800 $ 990 $ 700 $ 800 Long-term debt Owners' equity Common stock Accumulated retained earnings $ 150 $ 220 Fixed assets 200 290 Net plant and equipment $ 1,000 $ 1,300 Total Equity $ 350 $ 510 Total assets $ 1,850 $2,300 Total liabilities and owners' equity $ 1,850 $ 2,300 HOYT, INC. 2019 Income Statement (in 000s) Sales $ Cost of goods sold Depreciation 1,200 720 50 $ EBIT Inteest paid 430 88 $ Taxable income Taxes 342 72 Net Income $ 270 $ 180 Dividends Retained earnings 90 Requirement #1: Calculate each of the following ratios for HOYT, Inc. for 2019 only and complete the table below. (Do not round Intermediate calculations. Round your answers to 4 decimal places (e.g. 0.9173 or 2.1648). Input profit margin, return on assets, and return on equity as percentages (e.g. If the Profit Margin = 0.1576, Input your answer as 15.76). 2019 10 times Industry Average Current patin 1 2 Requirement #1: Calculate each of the following ratios for HOYT, Inc. for 2019 only and complete the table below. (Do not round Intermediate calculations. Round your answers to 4 decimal places (e.g., 0.9173 or 2.1648). Input profit margin, return on assets, and return on equity as percentages (e.g., If the Profit Margin = 0.1576, Input your answer as 15.76). a. Current ratio b. Quick ratio c. Total asset turnover d. Inventory turnover e. Total debt ratio f. Equity Multiplier g. Times Interest earned ratio h. Profit margin 1. Return on assets J. Return on equity 2019 1.0101 times .4747 times 7619 times 1.4694 times times Industry Average 1.3096 0.6021 0.9931 1.6514 0.6789 3.1143 4.4025 19.40% 19.27% 60.00% times ade Requirement #2: Use the ratios you calculated in Requirement #1 and the industry averages given in the table above to determine if HOYT, Inc. is "above average" or "below average" in each of the following areas of financial performance. Asset Use Efficiency Operating Efficiency Liquidity (Click to select) (Click to select) (Click to select) Requirement #2: Use the ratios you calculated in Requirement #1 and the Industry averages given in the table above to determine if HOYT, Inc. is "above average" or "below average" in each of the following areas of financial performance. Asset Use Efficiency Operating Efficiency Liquidity Shareholder Return Financial Leverage (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Requirement #3: Based on DuPont analysis, how would you explain the difference in the return on equity (ROE) for HOYT, Inc. vs. the industry as a whole in 2019 (l.e., why is the ROE for HOYT higher/lower than the ROE for the average firm in the industry)
