EAST COAST YACHTS

$2023$ Income Statement

Sales $$495,381,600$

Cost of goods sold $357,466,500$

Selling, general, and administrative $59,200,300$

Depreciation $16,166,700$

EBIT $$62,548,100$

Interest expense $8,910,000$

EBT $$53,638,100$

Taxes $(25\%)13,409,525$

Net income $ $40,228,575$

Dividends $$17,437,050$

Retained earnings $22,791,525$

Table Summary: A table titled EAST COAST YACHTS, $2023$ Balance Sheet, has $4$ columns. Columns $1$ and $3$ have account names. Columns $2$ and $4$ list dollar amounts.

EAST COAST YACHTS

$2023$ Balance Sheet

Current assets Current liabilities

Cash and equivalents $$9,096,300$ Accounts payable $$36,146,575$

Accounts receivable $15,131,900$ Accrued expenses $5,151,400$

Inventory $16,322,100$ Total current liabilities $$41,297,975$

Other $949,400$

Total current assets $$41,499,700$

Fixed assets Long$-$term debt $$137,200,000$

Property, plant, and equipment $$370,828,800$ Total long$-$term liabilities $$137,200,000$

Less accumulated depreciation $(92,206,700)$

Net property, plant, and equipment $$278,622,100$

Intangible assets and others $6,094,800$ Stockholders$$ equity

Total fixed assets $$284,716,900$ Preferred stock $$1,595,700$

Common stock $29,057,000$

Capital surplus $24,178,000$

Accumulated retained earnings $131,382,725$

Less treasury stock $(38,494,800)$

Total equity $$147,718,625$

Total assets $$326,216,600$ Total liabilities and shareholders$$ equity $$326,216,600$

Table Summary: A table titled YACHT INDUSTRY RATIOS, has $4$ columns. Column $1$ lists financial ratios. Columns $2,3,$ and $4,$ titled Lower Quartile, Median, and Upper Quartile, respectively, have decimal values and percentages.

YACHT INDUSTRY RATIOS

Lower Quartile Median Upper Quartile

Current ratio $\mathrm{.}861\mathrm{.}511\mathrm{.}97$

Quick ratio $\mathrm{.}43\mathrm{.}751\mathrm{.}01$

Total asset turnover $1\mathrm{.}101\mathrm{.}271\mathrm{.}46$

Inventory turnover $12\mathrm{.}1814\mathrm{.}3816\mathrm{.}43$

Receivables turnover $10\mathrm{.}2517\mathrm{.}6522\mathrm{.}43$

Debt ratio $\mathrm{.}32\mathrm{.}56\mathrm{.}61$

Debt$-$equity ratio $\mathrm{.}831\mathrm{.}131\mathrm{.}44$

Equity multiplier $1\mathrm{.}832\mathrm{.}132\mathrm{.}44$

Interest coverage $5\mathrm{.}728\mathrm{.}2110\mathrm{.}83$

Profit margin $5\mathrm{.}02\%7\mathrm{.}48\%9\mathrm{.}05\%$

Return on assets $7\mathrm{.}05\%10\mathrm{.}67\%14\mathrm{.}16\%$

Return on equity $14\mathrm{.}06\%19\mathrm{.}32\%26\mathrm{.}41\%$

Using the informatio above calculate the ratios for East Coast Yachts for the industry ratios listed. Then compare East Coast liquidity, financial leverage and turnover ratios to the industry standards. Please analyze if East Coast is doing better or worse than the industry standard and what that means for the company.