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.

s of December 2012 Assets Current assets Cash and cash equivalents Accounts receivable, net of allowances Inventories Prepaid expenses S 56,203 20,656 29,294 5,761 $ 88,942 12,889 24,845 6,536 $133,212 Total current assets Property, plant, and equipment, at cost 137,273 $ 85,024 (50,574 $ 86,699 Less: Accumulated depreciation and amortization (44,767) Net fixed assets Other assets Total assets 105,327 $303,940 S51,001 224 470 Liabilities and Shareholders' Equity Current liabilities Notes and accounts payable Dividends payable Accrued liabilities S 28,860 1,026 20,976 S 50,862 S 4,927 16,780 Total current liabilities Noncurrent liabilities Long-term debt 40,735 $20,268 Shareholders' equity Common stock Capital in excess of par value Retained earnings 111,108 93,920 212,343 303,940 7103 86,162 88,439 181,704 S 224,470 Total shareholders' equity Total liabilities and equity Average number of common shares outstanding Otago Bay Marine Motors Income Statements ($ in thousands) 10,848,000 10,848,000 Forthe Year Ended December 31 Sales revenue Cost of goods sold $259,593 133,978 $125,615 $245,424 127,123 S 118,301 Gross profit margin Operating expenses Earnings from operations Other income (expense), net Earnings before income taxes Provision for income taxes 72,098 53,517 4,193 57,710 22,268 S 35,442 70,368 47933 3,989 51,922 19,890 32,032 Net earnings Cash dividends ($0.35 and $0.27 per share) Average price per share of common stock $ 3,769 $ 2,947 in the fourth quarter of the year) $ 74.25 80.75 Otago Bay Marine Motors 2012 Industry Average (for 2013) 2.36 1.27 10.00 9.30 15.87 19.21 1.59 19.87 2013 Current ratio Total asset turnover Debt-equity ratio Net profit margin ROA ROE EPS P/E ratio Dividend yield Payout ratio Price-to-book-value ratico .26 6.65