8. This question is based on the information provided in the abbreviated year-end Income Statement and abbreviated year-end Balance Sheet for NMC Corporation shown below. NMC Corporation Income Statement for the Calendar Year (January 1 - December 31) Thousands of dollars (except stock price, earnings per share, and dividends per share) Net sales $3000 Cost and expenses: $2734 EBIT $266 Less interest expense: $66 Earnings before taxes $200 Taxes $80 Net income before preferred dividends $120 Dividends to preferred stockholders $8 Net income available to common stock holders $112 Per share common stock: Stock Price $26.50 Earnings per share $2.24 Dividends per share $1.84 NMC Corporation Balance Sheet (Average of beginning and end of year) Assets (thousands of dollars) Liabilities and Equity (thousands of dollars) Cash $50 Accounts payable $60 Market securities $0 Notes payable $100 Accounts receivable $350 Accrued Wages $10 Inventories $300 Accrued Taxes $130 Total Current Assets: $700 Total Current Liabilities: $300 Net plant and equipment: $1300 Total Long Term Debt: $800 Total Stock Holders Equity: $900 Total Assets: $2000 Total liabilities and equity: $2000 8a. Calculate the NMC financial ratios contained in the following table Financial Ratios NMC Values Industry Values Current Ratio 2.5 times Quick (Acid) Ratio 1.0 times Total Debt to Total Assets 40% Return on Assets (ROA) 9% Price/Earnings Ratio 12.5 times 8b. Compare your results to the industry ratios and describe what NMC should do to improve its position in the market