Use the financial statements :

Fox Manufacturing Company Income Statement

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for the Year Ended December 31, 2015

Sales revenue

$ 605,000

Less: Cost of goods sold

457,000

Gross profits

$148,000

Less: Operating expenses

General and administrative expenses

$29,600

Depreciation expense

29,600

Total operating expense

59,200

Operating profits

$88,800

Less: Interest expense

10,400

Net profits before taxes

$78,400

Less: Taxes

27,400

Net profits after taxes (earnings available

for common stockholders)

Modifying $51,000

Earnings per share (EPS)

$ 2.51

Fox Manufacturing Company Balance Sheet

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December 31, 2015

Assets

Cash

$ 15,100

Marketable securities

7,200

Accounts receivable

34,300

Inventories

81,700

Total current assets

$ 138,300

Net fixed assets

272,000

Total assets

Modifying $410,300

Liabilities and Stockholders' Equity

Accounts payable

$ 57,200

Notes payable

12,800

Accruals

4,600

Total current liabilities

$74,600

Long-term debt

$152,600

Common stock equity (20,000 shares

outstanding)

$110,200

Retained earnings

72,900

Total stockholders' equity

$183,100

Total liabilities and stockholders' equity

$410,300

Fox Manufacturing Company for the year ended December 31, 2015, along with the industry average ratios

Ratio

Industry average, 2015

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Current ratio

2.40

Quick ratio

0.89

Inventory turnover*

4.46

times

Average collection period*

35.8

days

Total asset turnover

1.09

Debt ratio

0.23

Times interest earned

12.8

Gross profit margin

0.204

Operating profit margin	0.152
Net profit margin	0.109
Return on total assets (ROA)	0.112
Return on common equity (ROE)	0.204
Earnings per share (EPS)	$ 3.55
*Based on a 365-day year and on end-of-year figures. Prepare and interpret a complete ratio analysis of the firm's 2015 operations. b. Summarize your findings and make recommendations. a. The current radio is: