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(Ratio analysis) The financial statements and industry norms for Pamplin Inc. are shown in the popup window: a. Compute the ratios in the popup window, , for 2017 and 2018 to compare both against the industry norms. b. How liquid is the firm? c. Are its managers generating an adequate operating profit on the firm's assets? d. How is the firm financing its assets? e. Are its managers generating a good return on equity? Note: 15% of sales are cash sales, with the remaining 85% being credit sales. a. Compute the following ratios for 2017 and 2018 to compare both against the industry norms. (Round the numbers to two decimal places and select your evaluation from the drop-down menu.) Industry Norm 2017 2018 Evaluation Current ratio 5.00X Pamplin Inc. Balance Sheet at 12/31/2017 and 12/31/2018 ASSETS 2017 $ 201 449 545 $ 1,195 2018 $ 149 423 629 $ 1,201 Cash Accounts receivable Inventory Current assets Plant and equipment Less accumulated depreciation Net plant and equipment Total assets $ 2,197 (1,006) $ 2,605 (1,199) $ 1,191 $ 2,386 $ 1,406 $ 2,607 | LIABILITIES AND OWNERS' EQUITY Accounts payable Notes payable current (9.00% interest) Current liabilities Bonds (8.33% interest) Total debt Owners' equity Common stock Paid-in capital $ 202 0 $ 202 602 $ 804 $ 152 149 $ 301 602 $ 903 $ $ 302 604 302 604 2017 2018 Current ratio Acid-test (quick) ratio Inventory turnover Average collection period Debt ratio Times interest earned Total asset turnover Fixed asset turnover Operating profit margin Return on common equity Industry Norm 5.00 3.00 2.20 90.00 33% 7.00 0.75 1.00 20.0% 9.0%

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