The last two years of financial statements for Pamplin, Inc., are as follows:
Pamplin, Inc.
Balance Sheets, December 31, 2015 and 2016 ($thousands)

Pamplin, Inc.
Income Statements for the Years Ended December 31, 2015 and 2016

a. Compute the following ratios for both 2015 and 2016.
Industry Norm
Current ratio ........................................ 5.00
Acid-test (quick) ratio ............................. 3.00
Inventory turnover ................................. 2.20
Average collection period ........................ 90 days
Debt ratio ............................................ 0.33
Times interest earned .............................. 7.00
Total asset turnover ................................. 0.75
Fixed asset turnover ................................ 1.00
Operating profit margin ............................ 20%
Return on equity .................................... 9%
b. Compare Pamplin's financial ratios to the industry norms listed above, and assess each of the following attributes of the firm's financial condition: liquidity, capital structure, asset management efficiency, and profitability.

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2015 2016 Cash Accounts receivable Inventory $ 200 450 550 $ 1,200 s 150 425 625 $ 1,200 $2,600 Total current assets Less: Accumulated depreciation Net plant and equipment 1.200 $ 1,200 $ 1,400 Total assets $2,400 2015 2016 Accounts payable Notes payable-current (9% interest) $ 200 $ 150 0 150 Total current liabilities $ 300 Bonds (8.33% interest) Total liabilities Common stockholders' equity Common stock Paid-in capital Retained earnings $ 300 600 700 $ 300 600 800 1,700 Total stockholders' equity Total liabilities and stockholders' equity 1, $2.400 2015 $1,200 700 S_500 Operating expenses (cash) 30 Depreciation expense220 2016 Sales (all credit) $1,450 850 $ 600 $ 40 200 Cost of goods sold Gross profit Total operating expense Net operating income $ 250 50 $ 200 80 $ 120 $ 360 64 $ 296 118 $ 178 Interest expense Earnings before taxes Income taxes (40%) Net income