The financial statements of Zach Industries for the year ended December 31, 2019, follow.

a. Use the preceding financial statements to complete the following table. Assume that the industry averages given in the table are applicable for both 2018 and 2019.

b. Analyze Zach Industries’ financial condition as it is related to (1) liquidity, (2) activity, (3) debt, (4) profitability, and (5) market. Summarize the company’s overall financial condition.

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Zach Industries Income Statement for the Year Ended December 31, 2019 Sales revenue $160,000 Less: Cost of goods sold 106,000 $ 54,000 Gross profits Less: Operating expenses $ 16,000 Selling expense General and administrative expenses 10,000 Lease expense 1,000 Depreciation expense 10,000 $ 37,000 $ 17,000 Total operating expense Operating profits Less: Interest expense 6,100 $ 10,900 Net profits before taxes Less: Taxes 4,360 Net profits after taxes 6,540 Zach Industries Balance Sheet December 31, 2019 Assets Cash 500 Marketable securities 1,000 Accounts receivable 25,000 Inventories 45,500 Total current assets $ 72,000 Land $ 26,000 Buildings and equipment Less: Accumulated depreciation 90,000 38,000 Net fixed assets $ 78,000 Total assets $150,000 Liabilities and Stockholders’ Equity Accounts payable $ 22,000 Notes payable 47,000 Total current liabilities $ 69,000 Long-term debt 22,950 Common stocka 31,500 Retained earnings 26,550 $150,000 Total liabilities and stockholders' equity The firm's 3,000 outstanding shares of common stock closed 2019 at a price of $25 per share.