The last two years of financial statements for Blunt Industries are found here:

Blunt Industries Balance Sheets for December 31, 2012 and 2013 2015 2016 Cash $11,250 $650 Accounts receivable 15,610 20,790 Inventories 36,270 59,140 Total current assets $63,130 $80,580 Land $25,050 $33,810 Buildings and equipment 87,550 129,950 Less: Accumulated depreciation (35,020) (49,380) Total fixed assets $77,580 $114,380 Total assets $140,710 $194,960 Accounts payable $13,120 $28,570 Short-term bank notes 21,250 61,050 Total current liabilities $34,370 $89,620 Long-term debt $35,920 $29,840 Common stock 39,380 40,980 Retained earnings 31,040 34,520 Common equity $70,420 $75,500 Total debt and equity $140,710 $194,960

Blunt Industries Income Statements Years Ending December 31, 2015 and 2016 2015 2016 Sales (all credit) $187,470 $400,020 Cost of goods sold (112,450) (240,000) Gross profit $75,020 $160,020 Operating expenses Fixed cash operating expenses $(31,550) $(52,450) Variable operating expenses (18,720) (40,050) Depreciation expense (6,710) (25,030) Total operating expenses $(56,980) $(117,530) Earnings before interest and taxes $18,040 $42,490 Interest expense (5,700) (9,100) Earnings before taxes $12,340 $33,390 Income taxes (50%) (6,170) (16,695) Net income $6,170 $16,695

.a. Calculate the following financial ratios for 2015 and 2016:

Industry Averages 2015 2016 Current ratio 2.00 Acid-test ratio 0.80 Average collection period 37.0 Inventory turnover 2.50 Debt ratio 58.0% Times interest earned 3.80 Operating profit margin 10.0% Total asset turnover 1.14 Fixed asset turnover 1.40 Operating return on assets 11.4% Return on equity 9.5%

b. Evaluate the firm's financial position at the end of 2015 in terms of its liquidity, capital structure, asset management efficiency, and profitability.

c. At the end of 2016, the firm had 5,020 shares of common stock outstanding, selling for $14.92 each. What were the firm's (i) earnings per share, (ii) price-earnings ratio, and (iii) market-to-book ratio?

d. What observations can you make about the financial condition and performance of the firm from your answers to parts (a) through (c)?