Listed on the next page are the 2012 and 2013 financial statements for Otago Bay Marine Motors, a major manufacturer of top-of-the-line outboard motors.
Otago Bay Marine Motors Balance Sheets ($ in thousands)
a. On the basis of the information provided, calculate the following financial ratios for 2012 and 2013.
b. Considering the financial ratios you computed, along with the industry averages, how would you characterize the financial condition of Otago Bay Marine Motors? Explain.